Atlantic Management gets $87 Million Financing

BOSTON – Colliers International’s Boston-based capital markets group has closed the $87 million, 10-year interest-only fixed rate refinancing of 200 Forest Street, in Marlborough, Massachusetts. Colliers Senior Vice President Thomas Welch and Associate John Poole arranged the loan with Benefit Street Partners on behalf of Atlantic Management Corporation.

Formerly part of the Hewlett Packard campus, 200 Forest Street has been redeveloped by Atlantic Management into a state-of-the art laboratory and technology asset set within Marlborough Hills, a synergistic mixed-use master-planned development.

Atlantic ManagementThe collateral consists of an approximately 542,000 square foot, three-level, gut-rehabbed research and development facility occupied by Quest Diagnostics and GE Healthcare. Quest chose 200 Forest Street for a new prototypical regional headquarters and blood lab facility, accommodating a multi-facility relocation from existing facilities in Cambridge, Worcester and Connecticut. GE Healthcare, after an extensive evaluation of the greater Boston market, opted to relocate and expand its US life sciences headquarters from New Jersey to Marlborough.

The building itself represents the type of heavy duty construction with robust infrastructure rarely seen today due to the high cost of replication. Over the past two years, the Borrower and tenants have invested heavily in base building improvements and tenant fit out, including extensive laboratory facilities. 200 Forest Street now represents an exceptional and unique asset capable of accommodating large block modern technological and biotechnological laboratory, research and development, diagnostic and advanced manufacturing uses.

“Atlantic Management had the incredible foresight to acquire the 110-acre, 100% vacant, Hewlett Packard campus in 2011,” notes Welch.

By 2012 Atlantic had secured a flexible mixed-use zoning overlay for the campus providing for new, by-right uses including 350 units of multi-family housing, a select service hotel, up-to-75,000 square feet of retail and an expansive range of technology, biotechnology research, laboratory and manufacturing uses. Facilitated by a series of debt financings arranged by Colliers, 200 Forest Street was redeveloped and excess development parcels released, including the site of Avalon’s stunning new Class A multifamily development, a freestanding national daycare operation and CSM’s Hilton Garden Inn, which will open later this year.

Welch added, “Atlantic succeeded by executing on a vision to deliver the exceptional quality of space, amenity base and sense of place that world class tenants need to recruit and retain the highest quality employees.”

The financing does not encumber the adjacent retail parcel or 2 Results Way and provides for additional development flexibility on the loan collateral itself. “It will be exciting to see what happens next on campus,” concluded Welch. “Atlantic has a superlative reputation as a landlord and they have created a very special, dynamic environment at Marlborough Hills. That’s certain to attract additional interest.”

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