Of all the commercial real estate sectors, it seems that three, in particular, are garnering most of the attention from investors and industry insiders — life science, industrial and multifamily. This week, just weeks after announcing its merger with Chinook Therapeutics, Aduro Biotech announced that it had found a willing entity ready to take 112,088 square feet it was leasing from Wareham Development in Berkeley. Perfect Day, an innovative dairy food company, will take the space from Aduro in the building located at 740 Heinz Avenue, Berkeley, California. The deal was announced in Aduro’s 8-K filing submitted to the Securities and Exchange Commission in late August.
The terms of the deal provide that approximately 60,698 rentable square feet will be delivered to Perfect Day in 2020. Another 36,980 rentable square feet is expected to be delivered in 2021, while the remaining 14,410 rentable square feet of the premises is expected to be delivered by September 15, 2022. The term of the sublease will expire on December 31, 2029, and Perfect Day will pay Aduro base rent during the term of $5.25 per rentable square foot per month, which will increase 3 percent each year starting June 1, 2021 and on each June 1st thereafter during the term, according to the SEC filing.
In total, Perfect Day has agreed to pay Aduro $70.8 million over the next nine years.
“We’re delighted to welcome another innovative East Shore company, one doing important work in advancing the boundaries of sustainable food production technology. Perfect Day will be joining the diverse and important research cluster at our Aquatic Park Center campus,” said Lisa Vogel, Wareham’s director of asset management.
Aduro’s decision to sublease its space is mostly driven by the company’s recent announcement to merge with Chinook Therapeutics, a Vancouver, British Columbia, and Seattle, Washington-based clinical-stage biotechnology company focused on the discovery, development and commercialization of precision medicines for kidney diseases. Following closing, which is expected to occur in the second half of 2020, Aduro will be renamed Chinook Therapeutics, Inc. and is expected to trade on the Nasdaq Global Market under the ticker symbol KDNY.
740 Heinz Avenue is part of Wareham Development’s 17-building Aquatic Park Center located at the city’s southern boundary with Emeryville. The campus totals nearly 890,000 square feet of space, according to Wareham’s web site.
The 740 Heinz Avenue building was designed as a flexible state-of-the-art life science R&D building. With outdoor terraces and a landscaped plaza that includes public artwork and pedestrian-oriented rest places, 740 Heinz takes advantage of the inner courtyard of the Aquatic Park Center, a highly-trafficked pedestrian area that links businesses to the south and west of the park, the on-site child care facility and to the popular cafés and restaurants within 800 Heinz Avenue and beyond.