Dealmaker: Colliers Closes $87M Deal in Mass.

Colliers International secured $87 million in 10-year interest-only funds to refinance 200 Forest Street in Marlborough, Mass.

Colliers Senior Vice President Thomas Welch and Associate John Poole arranged the fixed-rate loan with Benefit Street Partners, New York, on behalf of Atlantic Management Corp., Framingham, Mass.

Atlantic Management redeveloped the former Hewlett-Packard property within its mixed-use master-planned development Marlborough Hills. Quest Diagnostics and GE Healthcare currently occupy the collateral, a 542,000-square-foot gut-rehabbed research and development facility with three levels.

“Atlantic Management had the foresight to acquire the 110-acre, 100 percent vacant Hewlett-Packard campus in 2011,” Welch said. “By 2012 Atlantic had secured a flexible mixed-use zoning overlay for the campus providing for new, by-right uses including 350 units of multifamily housing, a select-service hotel, up to 75,000 square feet of retail and a range of technology, biotechnology research, laboratory and manufacturing uses.”

Welch said Colliers arranged a series of debt financings that allowed Atlantic to redevelop the campus.    

Both Atlantic and 200 Forest Street tenants invested heavily in building improvements and tenant fit-out including extensive laboratory facilities, Welch said, noting that the property can accommodate 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, Welch noted.