October 15, 2013, Boston, MA â€“ Colliers International (Colliers) has arranged $60 million in bridge financing for 200 Forest Street, a 527,580-rentable-square-foot office/R&D building located adjacent to Interstate 495 in the Forest Street Office Park in Marlborough, Massachusetts. 200 Forest Street is part of the 109-acre former Hewlett Packard campus acquired vacant by the Atlantic Management (â€œAtlanticâ€) in 2011. The funding will allow for the recapitalization of the existing acquisition financing as well as provide funds to reposition and redevelop the property into a first-class mixed-use development. The first tenant, Quest Diagnostics, is currently completing the build out of a state-of-the art diagnostic lab facility within 200 Forest Street.
Colliers worked on behalf of Atlantic Management (â€œAtlanticâ€), to secure the $60-million bridge financing from UBS Investment Bank, retiring the original RCG acquisition financing arranged by Colliers in 2011 when the property was 100% vacant. Colliersâ€™ Boston-based Capital Markets team was led by Executive Vice President Dave Douvadjian, Senior Vice President Tom Welch and Credit Analyst Brian Gaswirth.
â€œAtlantic Management displayed their trademark vision in making an opportunistic acquisition in 2011,â€ said Douvadjian.
Atlantic completed a rezoning of Forest Street Office Park to provide for five distinct opportunities tailored to meet various unmet demands within the market. 200 Forest Street, now undergoing a stunning aesthetic transformation, represents the premier first-class large block R&D option in the market.
â€œIn terms of highway access, interstate visibility, infrastructure, amenities and overall appeal, no other big block leasing option comes close in its market,â€ remarked Welch.
Concluded in December 2012, the rezoning preserved the ability to redevelop the two existing office/R&D buildings and provides for the following new, by-right uses: 350 units of multifamily housing, 150-key hotel and up to 75,000 square feet of retail. A groundbreaking for the first new Class A apartment development in Marlborough in nearly a decade will take place at the property this fall.
â€œThe rezoning of this property into a campus of complimentary mixed uses has unlocked a tremendous amount of value and represents one more victory in Marlboroughâ€™s remarkable resurgence,â€ added Welch.
Quest Diagnostic, a Fortune 500 company, will join recent new neighbors TJX Companies, which acquired the vacant, adjacent former Fidelity campus and Boston Scientific. The remaining available space includes attractive first- and second-floor office space and flexible, third-floor space with heavy utility and floor- load capacity, tailboard docking and 18â€™ clear height. The space has proven particularly attractive to large block users seeking strategically located, first-class space necessary to attract and retain high quality employees.
Atlantic Management has developed a consistent track record of success over more than thirty years. In addition to its core commercial portfolio of approximately four million square feet, major completed developments include the acquisition and rezoning of a Raytheon site in Burlington, its redevelopment as Wayside Commons and its disposition for approximately $100 million to UBS. Atlantic Management also acquired the 96 acre Raytheon headquarters site in Lexington, rezoned the property for life sciences, added significantly to the site density, and leased and sold the property to Shire Pharmaceuticals for more than $200 million