Align Technology Inks 129K SF Lease

Align Technology (ALGN: 36.25 +1.06%) has signed a 7-year lease with Equity Office for two buildings on Orchard Parkway. The 129,000 square foot lease is for 86-months, and consists of two (2) 64,500 SF buildings located at 2560 Orchard Parkway and 2570 Orchard Parkway.

The terms of the lease are:

• 86 Months
• First 2 Months Free
• $1.00 NNN start with 3% bumps
• Tenant pays on 92% of the space first 3-years
• $20 in TI’s

In addition, Equity Office is responsible for building a covered walkway for the company to connect the two buildings. Bit of a weird deal given the “mini phase-in” and 2-months of free rent, but I suppose the company was looking at it from a GAAP perspective.

Align will be moving from a pretty undesirable building they occupy at the corner of Martin Ave and Lafayette close to San Jose International Airport.

Studley represented Align and EOP represented itself.

[ht jay]

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Comments

joshua February 5, 2010

speaking of looking at it from a GAAP perspective, im still curious to learn exactly how much the change to SFAS 13 is going to make to this whole leaseback and buy/lease business.

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