Item 1.01. Entry into a Material Definitive Agreement
245-249 West 17th Street
Pursuant to the terms of the purchase and sale agreement, the Company's obligation to close upon the acquisition is subject to certain conditions customary to closing. Although the Company believes that the acquisition of the property is probable, there can be no assurance that the acquisition will be consummated. The purchase and sale agreement contains customary representations and warranties by the buyer and sellers.
The contract purchase price of the property is
The property contains approximately 282,000 rentable square feet and is 99% leased. The property's largest tenant is Twitter, Inc., which represents 75% of annualized cash rental income. The remaining two tenants are
The following table provides information relating to lease commencement and termination dates, rentable square feet, rental escalations, renewal options and annualized cash rental income for each of such three tenants:
Annualized Cash Lease Lease Rentable Rental Commencement Termination Square Income Rental Renewal Tenant Date Date Feet (in thousands) Escalations Options April 2% annually Two Twitter, Inc. January 2014 2025 214,765
$14.7 million(1) and 10% in five-year April 2020 options 9% every One Room & Board, Inc. January 2014 October 2034 60,062 $4.7 million(2) three years five-year and 15% in option 2026 One
option (1) Rent commences between April and
August 2015. (2) Rent commences in October 2014.
A copy of the press release announcing the Company's entry into the purchase and sale agreement to acquire the property is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.