On November 11, 2019, X4 Pharmaceuticals, Inc. (the "Company") reported that it has entered into a lease agreement (the "Lease") with Beacon North Village, LLC (the "Landlord") for approximately 28,000 square feet of office space currently under construction in a building located at 61 North Beacon Street, Allston, Massachusetts (the "Premises") (Filing, 8-K, X4 Pharmaceuticals, NOV 14, 2019, View Source [SID1234551290]). The Lease will replace the lease for the Company’s current headquarters located at 955 Massachusetts Avenue, Cambridge, Massachusetts, which expires in July of 2022. The Company intends to move into the Premises in mid-2020.
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Monthly rent payments under the Lease are expected to commence on May 11, 2020 (the "Rent Commencement Date"), reflecting a 180-day rent-free period following the execution of the Lease, subject to the timely completion of construction of the Premises. The term of the Lease will continue until the end of the 84th full calendar month following the execution of the Lease, unless earlier terminated in accordance with the terms of the Lease.
Beginning on the Rent Commencement Date, the Company is obligated to make monthly rent payments in an amount of $2.92 per rentable square foot, at an annualized base rate of $35.00 per rentable square foot per year, which is subject to scheduled annual increases for the term of the Lease, plus certain operating expenses. Pursuant to the Lease, the Landlord will contribute up to $1.8 million toward the cost of tenant improvements for the Premises. The Company is also required to provide the Landlord with a $1.1 million security deposit in the form of a letter of credit.
The Company has the right to sublease the Premises, subject to landlord consent. The Company also has the right to renew the Lease for an additional five years at the then prevailing effective market rental rate.
The foregoing summary of the Lease does not purport to be complete and 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 Annual Report on Form 10-K for the period ending December 31, 2019.