CGA Capital Corporation Closes $687 million Landmark Deal to Finance Development and Construction of New National Security Facility

BALTIMORE, July 15 /PRNewswire/ -- CGA Capital Corporation and its affiliates have closed a highly structured, lease-backed financing worth $687 million.  The transaction paves the way for construction of a 1.5 million-square-foot manufacturing facility in Kansas City, Missouri, that will serve as the new National Security Campus for the National Nuclear Security Administration (NNSA).

The NNSA campus will serve as a primary producer of nonnuclear mechanical, electronic, and engineered materials for the U.S. nuclear weapons arsenal and other national security missions. The total cost of the new complex, including design, construction, equipment, and payments on the 20-year credit-tenant lease, is estimated at $4.76 billion.

CGA Capital, which was assisted by a team of attorneys from Ballard Spahr LLP, served as exclusive financial adviser and structuring agent for the complex public-private venture, and was the sole arranger of the private placement of bonds through a venture with a privately held securities firm. CGA's efforts covered every aspect of devising and structuring the financing needed for the project.

CGA Capital is a Baltimore-based firm focused exclusively on the structuring and provision of debt and equity for assets net leased to corporations, governments, and nonprofits. Since the company was founded in 1989 as Legg Mason Mortgage Corporation, it has originated, structured, and closed more than $11 billion in net lease debt and equity financings.

CGA also provides debt financing and equity structuring advice for institutional, high-net worth, and tax-motivated real estate equity investors nationwide. CGA provides investment banking, principal investing, and asset management services, and has more than $1.5 billion in net lease-related assets under management.

The CGA team was led by Managing Directors and Principals W. Kyle Gore and Richard A. Jacobs, and included Duncan Swanston and various principals at Bostonia Global Securities LLC. The Ballard Spahr team was led by Fred Wolf III and included Thomas A. Hauser, Charles R. Moran, Alan S. Ritterband, Benjamin A. Kelley, Michael T. Kersten, and Anna Mahaney.

"It was extremely gratifying to see all the complex elements of this deal come together successfully," Mr. Gore said. "This new facility is truly state of the art, from the way it will be designed and built to its financing structure. It is also a vital part of America's national security effort. Our team is proud to have been part of that, and equally proud to have worked on behalf of such a great developer client as CenterPoint Properties."

"This transaction represents an important milestone in our 20 year effort to be a leader in financing build-to-suit and sale-leaseback transactions for corporate and governmental net leased properties," noted Mr. Jacobs.  "Working closely with our longstanding legal team, we drew on many if not all of our experiences from prior transactions to drive the best possible result for our client."

The new, five-building manufacturing and research facility will replace the NNSA's outdated, World War II-era plant in Kansas City. It is one of the largest commercial projects under construction in the nation.

The new complex will be built in a farm field near the NNSA's current facility and owned by the Planned Industrial Expansion Authority of Kansas City (PIEA), a state-chartered development agency. The property will be developed and leased by CenterPoint Zimmer LLC, of Oak Brook, Illinois, which in turn will lease it for 20 years to the U.S. General Services Administration. CenterPoint Zimmer is an affiliate of CenterPoint Properties Trust, a leading industrial property and infrastructure project developer based in Chicago. NNSA's operations at the project will be managed by Honeywell Federal Manufacturing & Technologies LLC,  which operates the current facility.

The facility, one of the largest public-private GSA projects in history, will employ 2,500 workers upon completion. Groundbreaking is set to begin in August, with relocation scheduled to begin in 2012 and full occupancy expected in 2014.

"This project was remarkable in both size and scope," said Mr. Wolf, a partner in the Real Estate Department at Ballard Spahr, which oversaw the creation and negotiation of all loan documentation and had a major role in completing all lease and construction documents associated with the project. "There were quite a lot of players involved. We were fortunate to have represented a very good conductor, who kept everyone singing in tune."

About CGA Capital

CGA Capital Corporation (including its affiliates) is a Baltimore-based firm focused exclusively upon the structuring and provision of debt and equity for assets net leased to corporate, governmental, and 501(c)(3) users throughout the country. Founded in 1989 as Legg Mason Mortgage Corporation, CGA includes a team consistently recognized as one of the leading net lease financing sources in the country, with over $11 billion in net lease debt and equity financings originated, structured, and closed over the past 20 years. CGA's principals led the real estate net lease financing efforts at Legg Mason and RBS Greenwich Capital, and have been pioneers in innovative net lease transaction structures for office, retail, industrial, governmental, health care, manufacturing, and special purpose properties involving more than 50 separate corporate and governmental tenants in over 40 states. In addition to investing for its own account, CGA provides debt financing and equity investment services for institutional and high-net-worth real estate equity investors and developers nationwide.  

CGA also serves as the exclusive real estate net lease financing effort for RBS Global Banking & Markets, Americas (part of The Royal Bank of Scotland Group plc), and provides advisory services for debt and equity investments in excess of $1.5 billion through its loan servicing and asset management affiliates.

SOURCE CGA Capital Corporation