Item 1.01 Entry into a Material Definitive Agreement.
On January 8, 2021, Adverum NC, LLC, a subsidiary of Adverum Biotechnologies,
Inc. (collectively, "Adverum") and ARE-NC REGION NO. 21, LLC ("Landlord")
entered into a Lease dated as of January 8, 2021 (the "Lease"), pursuant to
which Adverum will lease approximately 174,000 rentable square feet located at
14 TW Alexander Drive, Durham, North Carolina (the "Premises"). The Premises
will support Adverum's current Good Manufacturing Practices (cGMP) manufacturing
of Adverum's novel gene therapy candidate, ADVM-022, as a potential one-time,
intravitreal injection for the treatment of patients with wet age-related
macular degeneration and diabetic macular edema, and is expected to be
production-ready by the end of 2023.
The term of the Lease commences upon delivery of the Premises to Adverum and
runs for 16.5 years, with two consecutive five-year extension options. Rent on
the Premises will commence eighteen months after such delivery at a rate of
$477,426 per month, and will be increased annually by a 3% rent adjustment. In
addition, during the term of the Lease, Adverum will pay Landlord, on an annual
basis, a portion, as determined according to the Lease, of certain operating
expenses, property management fees and taxes related to the Premises incurred by
Landlord, as well as a security deposit of $2.8 million.
Landlord has agreed to provide Adverum with: a tenant improvement allowance of
up to $135/rentable square foot and a warm shell improvement allowance of up to
$2.0 million, which are included in the base rent; and an additional tenant
improvement allowance of up to $100/rentable square foot, which Adverum is
required to repay over the term of the Lease with an interest rate of 8%.
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, a copy of
which will be filed as an exhibit to Adverum's Annual Report on Form 10-K for
the year ended December 31, 2020.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above is incorporated by reference here.
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