Extreme Networks, Inc. entered into a new 57,586-square-foot office lease in San Jose, CA; and agreed to double its space in the Research Triangle area in North Carolina just a few months after signing its original lease there.
Extreme Networks signed a lease for one of three buildings at 145 Rio Robles Dr. in San Jose from W3 Ridge Rio Robles Property LLC. The lease commences July 1, 2013, with an initial term of 10 years and an option to renew for an additional five years.
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W3 Partners, an institutional real estate investment manager and operating company, and Ridge Capital Partners LLC, a private equity investment firm, acquired the three-building R&D office complex last October for $34.15 million. A key acquisition strategy was working with SunPower Corp. to consolidate from its occupancy of all three single-story buildings into two buildings, providing the new owners with the opportunity to sign Extreme Networks.
Extreme Networks will pay base rent of $1.35 million per year, increasing annually to $1.76 million in the final year of the initial term. W3 Partners is obligated to provide up to $1.15 million as an allowance toward initial tenant improvements.
Jeff Houston and Joe Kelly at CBRE represented the landlord in lease negotiations.
Extreme Networks also entered into a lease amendment with RDU Center III LLC for its offices at 2121 RDU Center Drive at the northeast of I-40 and the Aviation Parkway Interchange in Morrisville, NC.
The amendment provides for the leasing of an additional 29,150 square feet, comprising the third floor of the premises. Extreme Networks already had signed on to lease 29,150 square feet there starting next summer.
Rent commences May 1, 2013, for the original premises in an amount of $979,000 and commences June 1 for the entire premises in an amount of $1.78 million per annum, increasing annually at a fixed rate per square foot to $2.07 million per annum in the final year of the initial term.
Kent Honeycutt and J.D. McNeill with Cushman & Wakefield | Thalhimer represented the landlord in this transaction. The tenant was represented by CBRE in all deals.
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