The five-year sublease begins this month. The average annual rate on the deal is $24.28 per sf, or $833,000. Another 4,000 sf of office space is still available for sublease, Eden CFO Brad Powell tells GlobeSt.com.
Powell says the rental income will not fully recover costs associated with the subleased space. As a result, a charge to operations totaling $4.3 million was recorded in the quarter ended Dec. 31.
"We pretty much did everything at the top of the market," Powell tells GlobeSt.com. Powell says the company isn't losing money on the rent side, but rather on the tenant improvements they made to the space.
Eden is a publicly traded producer of products for improving crop yields. Ceptyr is a biotech company focused on therapies for diabetes, obesity, cancer and immunosuppression.
EDEN Bioscience raised more than $92 million in an initial public offering in September 2000. Company shares are traded on the NASDAQ exchange.
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