160,000-SF Biotech Building Secures $46M in Financing

BOSTON-Construction and permanent financing in the amount of $46 million was secured for the development of 670 Albany St., a 160,000-sf biotechnology research building within the BioSquare complex.

Senior managing director Riaz Cassum and senior real estate analyst Anthony Cutone of the local office of Holliday Fenoglio Fowler LP worked on behalf of 670 Albany St 2004 LLC to arrange both financings. The 10-year, fixed-rate forward permanent financing was secured through New York State Teachers Retirement System and the two-year, adjustable-rate construction loan was arranged with Fleet Bank.

Cassum notes that both the construction and long-term permanent financing allows the borrower to receive the benefits of a traditional floating rate construction loan, while at the same time locking in the long-term cost of capital. The property is subject to a 75-year ground lease with University Associates, a joint venture between Boston University and Boston Medical Center.