Benzinga | Jul 14, 2021 07:13AM EDT

Nkarta 8-K Shows Co. Entered Into Triple Net Lease Between Co., HCP BTC For Lease Of Existing Office Building In San Francisco, California

On July 9, 2021, Nkarta, Inc. (the "Company") entered into a "triple net" lease between the Company and HCP BTC, LLC ("Landlord"), pursuant to which the Company will lease an existing office building, comprising approximately 88,106 square feet of rentable space, located in South San Francisco, California (the "premises"). The premises may be used for general office, research and development, manufacturing, engineering, laboratory, storage and/or warehouses uses, and lawful uses ancillary thereto. The term of the Lease will commence on the earlier to occur of (i) the date the Company first commences to conduct business on the premises, and (ii) the date that is eight (8) months after the "possession date" (as defined in the Lease) (such date, the "Lease Commencement Date"), and will continue for approximately twelve (12) years. The Company also has one (1) option to extend the term of the Lease for an additional period of approximately twelve (12) years.



The Company will become responsible for paying rent under the Lease on the Lease Commencement Date. The Company's monthly installment of base rent for the new premises will start at approximately $563,878 commencing on the Lease Commencement Date and will increase on an annual basis up to a maximum monthly base rent of approximately $823,245. In addition to base rent, the Company is responsible for payment of "direct expenses" (as defined in the Lease), which include operating, insurance and tax expenses consistent with a "triple net" lease.



The Lease also provides for a tenant improvement allowance of up to approximately $25.2 million for tenant improvements and certain infrastructure upgrades in connection with the initial buildout of the premises, approximately $4.4 million of which, if utilized, would need to be repaid by the Company over the Lease term subject to the terms and conditions set forth in the Lease.