Item 1.01 Entry into a Material Definitive Agreement.
One Alexandria Square Lease Agreement
On January 19, 2022, Singular Genomics Systems, Inc. (the "Company") entered
into a Lease Agreement (the "Lease") with an affiliate of Alexandria Real Estate
Equities, Inc. ("ARE") to lease two buildings ("Building 3" and "Building 4") to
be constructed in connection with One Alexandria Square in La Jolla, California.
Building 3 and Building 4 are comprised of 113,094 square feet and 92,572 square
feet, respectively, of office and manufacturing space and will serve as the
Company's future headquarters.
The term of the Lease will commence when ARE's work for Building 3 is
substantially complete, which is expected to be November 1, 2024 (the
"Commencement Date"). The Company's obligation to pay rent for Building 3 will
begin approximately seven months following the Commencement Date. The Company's
obligation to pay rent for Building 4 will begin 12 months following the
Commencement Date, subject to the substantial completion of ARE's work on
Building 4. The Company has an option to accelerate the construction and
delivery of Building 4 to be the same date as the Commencement Date and will
receive 12 months of base rent abatement on Building 4 if it exercises this
option. The initial term of the Lease is 144 months following the Commencement
Date. The Company has the one-time option to extend the term of the Lease by 60
months upon prior notice to ARE. The annual base rent under the Lease is
initially $64.80 per square foot per year, subject to annual increases of 3% and
certain other adjustments, and includes tenant improvement allowances. The
Company will also pay for an estimated $24 million of certain tenant
improvements plus 7% interest per year amortized in equal monthly payments over
the term of the lease. At the time of entering into the Lease, the Company paid
ARE $1.1 million as prepayment for rent and, as a security deposit, provided ARE
with a $1.1 million standby letter of credit.
The foregoing descriptions of the terms of the Lease do not purport to be
complete and each is qualified in its entirety by reference to the full text of
the Lease, which will be filed as an exhibit to the Company's Quarterly Report
on Form 10-Q for the quarter ended March 31, 2022.
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