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Subsequent Event
9 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
Subsequent Event

NOTE 10— SUBSEQUENT EVENT

 

On November 3, 2017, Sangamo Therapeutics, Inc. (the “Company”) entered into a Lease Agreement (the “Lease”) with Marina Boulevard Property, LLC (“Landlord”) for the lease of approximately 87,695 square feet of rentable area of the building located at 7000 Marina Boulevard, Brisbane, California (the “Premises”). The Company expects to occupy the Premises upon completion of tenant improvements, which the Company expects will occur by the end of 2018. The Company plans to use the Premises as its new principal executive offices and for general office, research and development, lab and manufacturing uses. After the relocation, the Company plans to continue to utilize its currently-leased space located in Richmond, California as a research center.  

Unless earlier terminated, the term of the Lease (the “Initial Term”) will commence on June 1, 2018 (the “Commencement Date”) and will expire the day before the eleventh anniversary of the Commencement Date. The aggregate base rent due over the Initial Term under the terms of the Lease is approximately $38 million (without giving effect to certain rent abatement terms). The Company will also be responsible for the payment of additional rent to cover certain costs, taxes and insurance. Based on the estimated monthly additional rent for 2017 as set forth in the Lease, the Company estimates that the additional rent during the Initial Term will be approximately $10 million. The Company also expects to pay approximately $15 million for leasehold improvements, net of the tenant improvement allowance.

The Company has two renewal options to extend the term of the Lease for a period of five years each (each, a “Renewal Term”) beyond the Initial Term. Under the terms of the Lease, the base rent payable with respect to each Renewal Term will be equal to 90% of the prevailing market rental rent as of the commencement of the applicable Renewal Term. In the event of a default of certain of the Company’s obligations under the Lease, Landlord would have right to terminate the Lease. At this time the Company is assessing the accounting impact of the lease.