Janaury 3, 2014 - Bostonia Group Closes on $258,000,000 GSA Credit Tenant Lease Transaction for NOAA Headquarters in Silver Spring, Maryland
Bostonia Partners LLC, the investment banking arm of Bostonia Group LLC, recently closed on two transactions totaling approximately $258,000,000 for the permanent financing of two GSA credit tenant leases in Silver Spring, Maryland. The Borrower is using the funds to refinance two of the headquarters buildings for the National Oceanic and Atmospheric Administration (NOAA) at the Silver Spring Metro Center (SSMC). The notes were placed by Bostonia Global Securities LLC, the broker-dealer arm of Bostonia Group LLC. SSMC was developed between 1987 and 1993 by Foulger-Pratt for occupancy by the GSA.
The transactions included the SSMC III building (519,484 SF) and the SSMC IV building (293,446 SF). The SSMC III transaction comprised two tranches of lease-backed secured notes totaling approximately $175,000,000, while the SSMC IV transaction comprised two tranches of lease-backed secured notes totaling approximately $83,000,000. Bostonia structured each transaction as a credit tenant lease financing and issued lease-backed secured notes from the Borrower to Institutional Investors in the private placement market. The notes are payable from the rental income of each building. The SSMC III financing is not cross-defaulted or cross-collateralized with the SSMC IV financing.
“The Silver Spring Metro Center is a marquis development in the Washington, D.C. area and we are grateful to have contributed to the continued economic development of Silver Spring and the presence of GSA and NOAA in the neighborhood,” said Anita P. Molino, managing partner and President of Bostonia Partners. “It was a pleasure to work on the SSMC transactions with such experienced development, legal, and investment teams. These were large and complex transactions that could not have been completed without the excellent teamwork from everybody involved.”
As one of the Washington region’s largest single tenants with 4,200 employees and approximately 1,150,000 SF at the SSMC Complex, NOAA is the world’s largest and most comprehensive agency committed to weather monitoring and environmental research. In its entirety, the SSMC Complex includes a mix of office, retail, and residential development. The property is located along East-West Highway and next to the Silver Spring Metrorail and Metrobus station. NOAA is the sole office tenant in SSMC III. NOAA and the Federal Aviation Administration (“FAA”) are strategically co-located in SSMC IV, as the two agencies share critical mission functions regarding the National Weather Service. The current leases commenced in 2013 and will expire in 2028. Each building will achieve LEED for Existing Buildings certification from the U.S. Green Building Council within 24 months of lease commencement.