State Office Complex
John Blomfield structured and arranged a $50,000,000 Credit Tenant Lease (CTL) for the Rainer Fund.
Background. The State of Alaska was faced with an eviction notice by the fire marshal and was given 90 days to relocate.
Challenge. With only 90 days to locate 150,000 square feet of office space, design and complete tenant improvements, negotiate a lease structure in a manner that it would be financeable. This full service lease was subject to an annual appropriation clause.
Financial Solution. A bulk appropriation clause was approved by the State Attorney General Office in order to rate the lease. Full service lease structure with CPI adjustments on variable operating cost only. Date certain in lease arranged. The project was completed on time and under budget.
