Thursday, May 08, 2008
New Boston Fund Recapitalizes Innovation Business Center
Partners with industry leader on deal
Manassas, VA (May 9, 2008) - New Boston Fund, Inc., a private real estate investment, development and management firm, today announced the recapitalization of Innovation Business Center, a three-building 125,000-square-foot Class A flex/office property on 11 acres in Manassas. The property, located at 9371 Innovation Drive, was developed by Buchanan Partners in 2006.
New Boston acquired an 80% ownership interest from Buchanan Partners, who will retain the remaining 20% interest. New Boston will create value with its investment by leasing-up the remaining vacant space in the currently 77% leased property. The flex market in Prince William County has been growing consistently for the past several years and its long term growth prospects attracted New Boston to this deal. Currently, tenants in the market are searching for high-quality facilities like Innovation Business Center that offer them flexibility and value.
Through this acquisition and recapitalization, New Boston Fund has acquired a high quality asset with an excellent location in a growing market, said Patrick Shooltz, Senior Vice President and Regional Director for New Boston Fund. This joint venture with Buchanan Partners will provide our investors solid returns while advancing New Boston`s goal of building strategic alliances with the highest quality development partners in the Mid-Atlantic region.
Buchanan Partners developed Innovation Business Center as the first fully speculative flex/office project in the immediate area because we are bullish on western Prince William County, said Brian Benninghoff, Principal, Buchanan Partners. The county has one of the highest job growth rates in the nation, and we believe many companies will want to locate near where their employees live in order to improve their qualities of life. We are very pleased to be forming this relationship with New Boston Fund.
Innovation Business Center consists of high-quality concrete tilt-up construction with attractive brick inserts and an abundant glass line. In addition, the property offers both drive-in and dock-high loading capabilities and ample surface parking.
The property is located near the Prince William Parkway, is within four miles of I-66 and only 20 miles from Washington Dulles International Airport. Current tenants include Metris, Prince William County, Utron, Inc., and Northern Virginia Community College. Innovation Business Center is part of INNOVATION @ Prince William Technology Park, which is a 1,500-acre business and technology park targeting biotechnology, life science, and supporting industries. Anchored by George Mason University`s life science campus, INNOVATION has grown since its inception in 1992 to become home to biotech industry leaders.
Innovation Business Center was acquired with funds from New Boston Fund VII, a fund that focuses on capital preservation and value enhancement with extensive diversification across strategy, geography, and property type.
About New Boston Fund
New Boston is an independent, privately owned real estate investment manager and an industry leader in providing real estate investment, development and management services with a history of strong sponsorship and oversight of its investment funds. New Boston has developed or acquired commercial and residential properties with a cumulative market value of about $4.0 billion including 20 million square feet of commercial real estate and 6,700 residential units. Our investment vehicles cater to institutional and high-net worth investors by offering value add and urban real estate investment funds with a focus on diversification and capital preservation. New Boston Fund: People, Values, Returns.
About Buchanan Partners
Buchanan Partners has been a leader in real estate development, management, and investment in the Mid-Atlantic region for more than thirty years and has a long history of providing significant returns to its investment partners. Buchanan Partners has also been a vanguard of green development and has achieved LEED Gold and Platinum designations with recent projects.
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