200 Forest Street - Marlborough, MAMarlborough, MA Colliers International’s Boston-based capital markets group has closed the $87 million, 10-year interest-only fixed rate refinancing of 200 Forest St. Colliers senior vice president Thomas Welch and associate John Poole arranged the loan with Benefit Street Partners on behalf of Atlantic Management Corp. Formerly part of the Hewlett Packard campus, 200 Forest St. 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.
The collateral consists of a 542,000 s/f, three-level, gut-rehabbed research and development facility occupied by Quest Diagnostics and GE Healthcare. Quest chose 200 Forest St. 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.
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 St. 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.
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,” said 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.”
“Atlantic Management had the incredible foresight to acquire the 110-acre, 100% vacant, Hewlett Packard campus in 2011,” said 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 s/f 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 St. was redeveloped and excess development parcels released, including the site of Avalon’s new class A multifamily development, a freestanding national daycare operation and CSM’s Hilton Garden Inn, which will open later this year. Welch said “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.”
Atlantic Management was formed in 1972 to provide investors with long-term capital growth through conservatively structured real estate investments. The company is focused on identifying, acquiring and redeveloping underperforming, mismanaged or value-add properties and currently owns and manages a portfolio of over 5 million square feet of property throughout New England.
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