PUBLICATION: THE REAL DEAL SF
Company is second Redwood City business to lease part of same San Jose campus in past year
The robots are coming to San Jose.
Procept Biorobotics, a Redwood City maker of surgical robotics, agreed to lease about 158,000 square feet across two buildings in North San Jose that will become its new headquarters.
Procept signed a 122-month lease that starts on Dec. 31 with owners DivcoWest and Liberty Mutual Group, according to a Jan. 4 filing with the Securities and Exchange Commission and the Mercury News, which reported details of the transaction earlier. It’s renting more than half a four-building campus at 150-180 Baytech Drive and has options to extend its lease for two five-year terms.
The company will pay more than $4 million in base rent in the first year, or about $2.26 a square foot a month, and will receive a tenant improvement allowance of about $8 million from its landlord, according to the filing. Procept is renting its Redwood City headquarters, which total about 48,000 square feet, through 2023, according to the property records website CompStak.
The deal suggests Procept has outgrown its existing facility and needs three times as much room, even as its shares tumbled after a September IPO. Procept raised $164 million and was valued at about $1.7 billion after its first day of trading. The company now has a market valuation of about $996 million, the Silicon Valley Business Journal reported.
Procept is working on commercializing a surgical robotic system to treat prostate gland enlargement, a common condition for men as they age. The system works by creating a digital image of a person’s prostate and then removing tissue from it without changing how the gland functions. READ MORE.