Gemstone maker Charles & Colvard extends lease in Morrisville

Moissanite gemstone maker Charles & Colvard has extended its lease in Morrisville's Perimeter Park for an additional five and a half years.

The company leases 16,500 square feet in EastRidge, a business park with 477,000 square feet of office and flex space.

The lease extension was outlined in a filing with the Securities and Exchange Commission.

Charles & Colvard got a reduced rental rate and a 50 percent rent abatement for the first 12 months of the extension. The rental rate will increase 3 percent annually, and the company will have an option to terminate the lease in 2014.

Charles & Colvard's lease was originally set to expire in July. It remains a great time for stable companies to have their lease come up, as landlords are being very aggressive in trying to keep those that they already have.

"We did leverage the market a little bit," said Timothy Krist, the company's chief financial officer.

EastRidge is owned by Lutz Real Estate Investments, a firm based in Michigan.

Charles & Colvard has 25 employees.

The company's financial performance has been improving after struggling in 2008 and 2009, which led to a management overall and cost-cutting that included eliminating jobs.

Charles & Colvard has recorded four straight quarters of profitability, and sales grew 48 percent in the fourth quarter.

The higher sales are a result of a rise in orders of the company's loose moissanite gemstones and expanded orders for finished pieces of jewelry that feature moissanite.

The company said last month that it would undertake a series of marketing initiatives this year to boost sales.

Charles & Colvard shares were trading at $3.27 this afternoon, up 87 percent over the last year.