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TYNGSBOROUGH, MA-This suburban community north of Boston will soon be welcoming a new business, as Beacon Power Corp. has agreed to lease all of 65 Middlesex Rd. from GFI Partners. The single-story, 103,000-sf building will serve as Beacon's headquarters and a manufacturing facility for the firm's energy technology products.

"This new facility…will provide Beacon with the space and infrastructure we need to expand our business and make a smooth transition from development to full-scale production," CEO Bill Capp says in a statement. Capp says that Beacon will depart from 234 Ballardvale St. in Wilmington by October, adding the firm should be able to test and build more than 1,000 of its patented flywheel systems annually at the new property. Capp did not indicate whether any employees will be unable to make the switch to 65 Middlesex Rd., which is located about 20 miles from the Wilmington facility.

Neither Beacon nor the landlord, GFI Partners, provided details about the lease beyond labeling it a "long-term" agreement, but Capp did unveil an intricate financing plan structured to ease demands on Beacon's cash flow during the length of the pact. Besides committing to a number of site improvements and providing a generous tenant improvement allowance, GFI accepted 150,000 shares of Beacon's common stock, as well as a warrant covering 500,000 shares at an exercise price equal to the fair market value of each share on the date the warrants are issued. In return, GFI agreed to cash payment requirements on the lease agreement that are lower than market rates by an amount at least equal to the fair market value of the Beacon equity. Beacon's stock, listed on Nasdaq under the symbol BCON, was trading at $1.88 per share as of the market's closing bell yesterday.