A team of attorneys from Ballard Spahr assisted CGA Capital Corporation and its affiliates in closing a deal that 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 non-nuclear mechanical, electronic and engineered materials for the United States nuclear weapons arsenal and other national security missions. The highly structured lease-backed financing totaled $687 million. 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.

The Ballard Spahr team oversaw the creation and negotiation of all loan documentation and had a major role in completing all lease and construction documents associated with this effort, which constitutes one of the largest commercial real estate projects under construction in the nation and one of the largest ever undertaken by the U.S. General Services Administration.

CGA Capital served as exclusive financial advisor 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 securing the financing needed for the project and involved numerous attorneys at Ballard Spahr.

The new, five-building manufacturing and research facility, which will employ 2,500 workers, will replace the National Nuclear Security Administration's outdated, World War II-era plant in Kansas City. It will be called the NNSA National Security Campus. The new campus will reduce environmental waste and maintenance and energy costs, saving the federal government an estimated $100 million each year while supporting essential current and future national security requirements. It is being developed using sustainable design principles and is expected to receive a gold-level rating from the U.S. Green Building Council’s LEED program.

"This project was remarkable in both size and scope," said Fred Wolf III, a partner in the Real Estate department at Ballard Spahr. "There were quite a lot of players involved and many moving parts. We were fortunate to have represented a very good conductor who kept everyone singing in tune."

Mr. Wolf led a team that included Ballard Spahr attorneys Thomas A. Hauser, Charles R. Moran, Alan S. Ritterband, Benjamin A. Kelley, Michael T. Kersten, and Anna A. Mahaney.

"The Ballard Spahr team truly served as our partner over a multi-year period in virtually every element required to complete this extremely significant and complex net lease financing," said W. Kyle Gore, a Managing Director and Principal with CGA Capital. "We benefited greatly from our nearly 20 year relationship with Fred Wolf and Tom Hauser and their colleagues at Ballard Spahr, which enabled us to close an incredibly unique transaction with major institutional investors, and on behalf of a major real estate development firm."

The CGA team was led by Mr. Gore and Richard A. Jacobs, also a Managing Director and Principal of CGA Capital, and included Duncan Swanston and various principals at Bostonia Global Securities LLC.

The new complex, which will be built in a farm field near the NNSA's current facility, will be owned by the Planned Industrial Expansion Authority of Kansas City, Missouri, 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, LLC is an affiliate of CenterPoint Properties Trust. The project will be operated by Honeywell Federal Manufacturing & Technologies, LLC, which operates the current facility.

Groundbreaking is set to begin in August, with relocation scheduled to begin in 2012, and full occupancy expected in 2014.