Credit Suisse has filed a prospectus related to its CSAIL 2016-C6 Commercial Mortgage Trust deal, which is comprised of 50 loans secured by 363 commercial properties with an aggregate principal balance of $767.5 million.
Included in the prospectus is information related to the top loans, which includes an $87.0 million first mortgage loan secured by the fee interest in 200 Forest Street in Marlborough, Mass, an 88.4 percent leased, three-story suburban office / research and development property encompassing 541,747 square feet.
The borrowing entity for the loan is Atlantic-Marlboro Realty IV LLC, an entity indirectly owned by Joseph L. Zink, David A. Capobianco, Irene T. Gruber, and 13 passive individual investors.
The sponsor is Atlantic Management, a Boston based full-service real estate company that was formed in 1972. Atlantic Management owns and operates over 5 million square feet of commercial property including 10 life sciences assets, all within the Boston area. The sponsor’s three principals and non-recourse carve-out guarantors, Joseph L. Zink, Irene T. Gruber and David A. Capobianco, have each been with Atlantic Management for over 20 years. They have a combined net worth of approximately $39 million and liquidity of $6 million.
Built in 1970 and renovated between 2012 and 2015, the property is situated on approximately 44.9 acres with approximately 1,550 parking spaces.
According to the sponsor, over the past four years the sponsor and tenants have collectively invested an estimated $220 million ($406 PSF) into the property. The sponsor has invested approximately $60 million, and GE Healthcare and Quest Diagnostics have reportedly invested approximately $60 and $100 million, respectively. The funds were invested into base building, site work and tenant improvements, to create this office, R&D and technology asset.
The property’s overall buildout is approximately 60% office and 40% R&D space with average size floor plates of approximately 180,000 square feet.
As of March 5, 2016, the property was 88.4% leased to two investment-grade tenants under long term leasesD.
GE Healthcare (“GE”) leases 243,455 SF (44.9% of the net rentable area) through April 2030 with two, 5-year extension options that, if exercised, would extend the lease out to 2040. GE operates its US Life Sciences headquarters at the property. GE’s Life Sciences division is a $4.0 billion business segment of GE that focuses on drug discovery, DNA/protein research, bioprocessing and quality testing. GE has been a tenant at the property since 2015.
Quest Diagnostics (“Quest”) leases 235,638 SF (43.5% of the net rentable area) through May 2029 with three, 5-year extension options that, if exercised, would extend the lease out to 2044.
The property is located directly off Interstate 495 and is less than four miles from the Interstate 90 (Mass Pike) interchange, providing access to Boston and the Interstate 95/Route 128 corridor. The property’s corporate campus includes a nearby 350-unit Class A apartment development, a 163-key Hilton Garden Inn that is under construction, and a to-be-built 10,000 SF daycare center.
The property also features a full-service cafeteria and fitness facilities.