April 2012 - Bostonia Group Closes on $131,300,804 GSA Credit Tenant Lease Transaction for NIAID Headquarters Building in Rockville, Maryland
Bostonia Partners LLC, the investment banking arm of Bostonia Group LLC, recently closed on $131,300,804 in two separate tranches of lease-backed secured notes for the construction to permanent financing of a GSA credit tenant lease in Rockville, Maryland. The financing will support the development of the 491,000 square foot headquarters building for the National Institute of Allergy and Infectious Diseases (NIAID), one of the institutes of the National Institutes of Health (NIH). The notes were placed by Bostonia Global Securities LLC, the broker-dealer arm of Bostonia Group LLC. The project is being developed by Parklawn North LLC, an affiliate of The JBG Companies, which started construction in March 2012 and anticipates project completion in April 2014.
Bostonia structured the deal as a credit tenant lease with two tranches of lease-backed secured notes, which were issued by the developer in order to raise proceeds to complete construction of the project. The notes were issued in the private placement market to institutional investors and are payable from the rental income of the project.
“We are proud to contribute to the development of a project that will play such an important role in the missions of NIAID and NIH,” said Anita P. Molino, managing partner and president of Bostonia Partners. “The successful execution of this transaction demonstrates the depth of the market and strong investor appetite for good quality projects, even when they are highly structured and include long construction and rent abatement periods.”
The new NIAID headquarters building will be located adjacent to the Health and Human Services operational headquarters in the innovative, mixed-use neighborhood of Twinbrook in Rockville, Maryland. The project represents a “mission-critical” consolidation of NIAID operations that will ultimately house 2,575 NIAID personnel conducting and supporting basic, applied, and translational research to better understand, treat, and ultimately prevent infectious, immunologic, and allergic diseases. NIAID has been designated by Congress as the lead agency in formulating a biodefense strategic research plan to address federally funded research involving highly infectious pathogens that threaten public health worldwide. The new headquarters building will be built to achieve LEED Core & Shell and LEED for Commercial Interiors silver certifications.