SPECIALTY LABS CORPORATE HEADQUARTERS

The Specialty Laboratories project is a laboratory and corporate headquarters facility built in Santa Clarita, California. Specialty Laboratories is a research-based clinical laboratory that is primarily focused on esoteric clinical laboratory tests. The project was a turn-key, build-to-suit development inclusive of all shell, core and tenant improvement design and construction. The project was initially financed utilizing a synthetic lease finance structure. The debt and equity financing, was arranged by a principal of our firm, and provided by a seven bank group syndicate, closed in April of 2002. Construction for the project commenced immediately following the close of financing. In 2003, as financial reporting rules relating to synthetic leases were modified by the FASB, the project was recapitalized using traditional real estate debt and equity.

The site, which was owned by Specialty and ground leased to the building Landlord, is a 13.8-acre parcel located on Tourney Road north of Valencia Boulevard. The building is three stories of approximately 66,000 square feet each, totaling 198,000 gross square feet. Other components of the project include a central plant to support the building and lab space, and approximately 940 surface parking spaces.