Summary
Intuit Inc. (INTU) has filed an 8-K report detailing a significant new lease agreement and an amendment to an existing lease, both with Kilroy Realty, L.P. The primary focus is a new lease for approximately 365,000 square feet of office space at the "Santa Fe Summit" project in San Diego, California, with an option for additional space. This new lease commences in September 2007 and extends for a minimum of ten years, with potential for extensions. Investors should note the substantial financial commitments associated with this long-term lease, including estimated maximum base rent, common area maintenance (CAM) charges, and tenant improvement costs, which total an estimated $147.0 million over the lease term.
Key Highlights
- 1Intuit entered into a material definitive agreement for a new office lease in San Diego, California, for approximately 365,000 square feet, with an option for an additional 101,000 square feet.
- 2The new lease for the "Santa Fe Summit" project has a term beginning September 1, 2007, and ending August 31, 2017, with two five-year renewal options.
- 3Estimated maximum base rent for the initial ten-year term is approximately $10.0 million in years one through five and $11.8 million in years six through ten.
- 4Intuit will receive a tenant improvement allowance of $55 per rentable square foot (approximately $20.0 million), with the option to increase this allowance.
- 5Estimated maximum common-area maintenance (CAM) payments over the lease term are projected not to exceed $30.6 million.
- 6The total estimated maximum expenditures for this new lease commitment are approximately $147.0 million.
- 7A Third Amendment to an existing lease (Governor Park Lease) was also executed, extending the lease term and establishing new monthly base rent for the extended period.