LSC-BIO HC1, DST

IDHAO | UTAH

Beneficial Interests: $4,453,890

Offering Price: $12,890,000

  • Loan Proceeds: $7,880,000
  • Loan-to-Offering Price Ratio: 66.6%
  • Cash Flow : 6.1%
  • Minimum Investment[1031]: $100,000

Livingston Street Capital, LLC is a boutique private equity firm whose investment strategies currently encompass three main sectors, including healthcare, mission critical/strategic and multifamily properties. Our investment strategy can best be described as focusing on the “needs” of individuals and corporations versus the “wants.”

BIOLIFE PROPERTIES

The properties are 100% occupied by BioLife Plasma Services L.P. The lease is guaranteed by Baxalta Incorporated, which was acquired by Shire Group. BioLife Plasma Services is an industry leader in the collection of high quality plasma that is processed into life-saving plasma-based therapies.

INVESTMENT HIGHLIGHTS

  • Two newer constructed build-to-suit properties
  • Tenant executed an early renewal of their leases in 2010 with more than 4 years remaining on the original lease term
  • Average remaining lease term of both properties exceeds 12 years, not including extension options 
  • Tenant and lead guarantor are subsidiaries of the Shire Group (NASDQ: SHPG). Shire and the lease guarantor (Baxalta Inc.) currently maintain investment grade ratings of Baa3 by Moody’s Investor Services
  • New 10-year, fixed rate, financing that is fully prepayable at any time with no prepayment penalties or lockout
  • Sponsor and original developer will retain more than 10% of the total DST Interests
  • NNN net lease with very minimal landlord responsibilities
  • Long operating history of the tenant at the properties
  • Loan begins amortizing in year two
The properties are 100% occupied by BioLife Plasma Services L.P. The lease is guaranteed by Baxalta Incorporated, which was acquired by Shire Group. BioLife Plasma Services is an industry leader in the collection of high quality plasma that is processed into life-saving plasma-based therapies. The company operates and maintains numerous state-of-the-art plasma collection facilities throughout the United States and collects around 5 million liters of plasma per year. BioLife Plasma Services is part of Shire (SHPG: NASDAQ), the leading global biotechnology company focused on serving people affected by rare diseases and highly specialized conditions.

PROPERTY OVERVIEW

BIOLIFE HAYDEN, IDAHO

The subject is situated in the eastern portion of the City of Hayden, Idaho and is considered a suburban location. Hayden borders the City of Coeur d’Alene to the south. Coeur d’Alene is in Kootenai County and approximately 20 miles east along Interstate 90 from Spokane, Washington. The property’s neighborhood is predominantly retail with commercial land uses along the primary arterials with less intense commercial buildings on secondary streets. Uses within the neighborhood are largely a reflection of the underlying zoning.

BIOLIFE LAYTON, UTAH

The subject is in the city of Layton and is considered a suburban location. Layton is situated in northern Davis County, about 30 miles north of the Salt Lake Central Business District. Land uses within the property’s immediate area are a mix of government, commercial and residential uses. The largest land use in the area is the Hill Air Force Base which is about 1.5 miles north of the property. Much of the remainder of the area is commercial along major streets with residential infill.

ABOUT Livingston Street Capital, LLC

Livingston Street Capital, LLC is a boutique private equity firm whose investment strategies currently encompass three main sectors, including healthcare, mission critical/strategic and multifamily properties. Our investment strategy can best be described as focusing on the “needs” of individuals and corporations versus the “wants.” As a result, we focus on investment themes that we believe are less geared towards discretionary expenditures and are more closely aligned to what is essential to the user.
We are led by a management team that has collectively transacted more than $20 billion of real estate transactions throughout their careers and brings more than 75 years of collective experience. Our team has experience in both the full development cycle of real estate as well as ability to execute and structure the full capitalization of an investment. We bring a broad spectrum of understanding from ground-up development within certain sectors to multibillion dollar recapitalization and buy-outs of real estate companies.