The company’s facility leases were nearing expiration and IONIS was interested in moving into a new facility that would house their operation under one roof.
They desired a facility that would reflect the company’s culture, allow for continued growth, and provide an efficient mix of office and highly-specialized lab space for pharmaceutical drug development and testing.
Cresa researched existing facilities as well as land parcels for purchase or possible build-to-suit opportunities.
After selecting a land parcel to pursue, the client challenged Cresa to identify financing solutions that would minimize cash outlay, maintain long-term control, and provide a hedge against inflation risk.
Cresa negotiated and secured the purchase of 12.35 acres, providing an optimum development opportunity for IONIS Pharmaceuticals.
Cresa Capital Markets developed a strategy with a minimal outlay of cash and attractive financing rates, despite the company not yet reaching profitability. A variety of leasing and financing structures were analyzed.
Cresa team used its network to identify an ideal financing partner providing for the lowest cost of financing assurance of funding and allow the client to retain absolute control.
Favorable terms were negotiated for key provisions such as inflation hedges, rent escalations, and predetermined purchase options.
Cresa worked with the auditors to ensure the lease qualified as an operating lease, and the pre-negotiated purchase options in the lease were structured to provide flexibility to unwind the lease should accounting rules change the treatment of the lease.
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