June 13, 2014 - Bostonia Group Closes on Tenant Improvement Financing for FBI / ICE Field Office in Guam
Bostonia Group LLC recently closed on $3.25 million in lease-backed secured notes for the tenant improvements in a General Services Administration (GSA) facility in Tamuning, Guam. The investment grade transaction follows on the original build-to-suit construction financing of $12.5 million that Bostonia provided to the owner and developer, Micronesia CSL Development. The additional tranche of lease-backed notes will support additional tenant improvement work in the 30,170 SF GSA facility. When complete, the LEED Silver facility will host Federal Bureau of Investigation (FBI) and Immigration Customs Enforcement (ICE) operations in the Asia-Pacific region. The notes were structured by Bostonia Partners LLC and placed by Bostonia Global SecuritiesLLC.
Bostonia structured the initial transaction with two initial tranches of lease-backed secured notes, which were issued by the developer in order to raise proceeds to complete construction of the project. The follow-on tranche of lease-backed secured notes, were issued by the developer to raise additional proceeds that will be used to fund an expanded scope of tenant improvement work. Each tranche of notes were issued in the private placement market to institutional investors and are payable from the rental income of the project.
“This transaction required a detailed understanding of the local development landscape in Guam, including complex coordination among local legal counsel, construction services, and insurance providers,” said Anita P. Molino, managing partner and president of Bostonia Partners. “We are pleased that our partnership with institutional investors enabled us to finance this facility that will be very important to the U.S. government’s mission in the region.”
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