Welcome
We are excited to introduce ourselves to you and our unique way of working together. In order to provide you with the optimal experience, how would you describe yourself?

Case Study

Financing the world headquarters for New Balance​

New Balance has shaped Boston for decades. Learn more about why they chose to work with us to finance their new LEED-certified headquarters.​

Case Study

Financing the world headquarters for New Balance​

New Balance has shaped Boston for decades. Learn more about why they chose to work with us to finance their new LEED-certified headquarters.​

At a Glance

Identifying the most effective capital structure​​​​

We provided New Balance the ability to finance the construction of its new global headquarters in Boston Landing. ​

Relationship since 2013
Transaction details:
  • Construction-to-Permanent Financing​
“In financing the world headquarters for New Balance, we were able to take advantage of a credit tenant facility that allowed us to maximize proceeds for this project, while being able to utilize other capital resources to finance the remaining projects at Boston Landing.”​
Jim Halliday​ Managing Director, NB Development Group​
New Balance partner story

The Full Story

Providing a Customized Solution​​

New Balance was looking to finance the construction of its new global headquarters building in Boston Landing. In order to facilitate the project, the Company originally was looking at a commercial real estate solution and didn’t realize that given it was a private company, it could look to us for other sources of capital.​

We were able to work with the company to meet their financing goals by sizing the transaction to match their construction budget, as well as provide a customized solution in which they could pay a rental rate that they were looking to achieve.​

“As a direct lender, we can move quickly to a rate-lock and work with the sponsor and the developer, as well as the tenant, in situations where there may be changes to the underlying project scope.”​
Elyssa McMullen​ Senior Vice President, Prudential Private Capital​

Keeping New Balance in the Boston Community​​

A credit tenant lease transaction is a hybrid between a corporate finance transaction and a real estate solution, in which a borrower would finance a project on a long-term basis and pledge to us a mortgage of the building and an assignment of the underlying lease. Under a credit tenant lease financing, the borrower gets to monetize the rental stream due under a longer lease, and execute the transaction based on the credit quality of the underlying tenant rather than the value of the property.​

As a result of our partnership, we walked New Balance through the whole process, had very efficient due diligence, and provided the maximum proceeds. New Balance has been in this Boston Landing area for 40+ years and we are proud to support their relationship with the surrounding community. ​

Outside of New Balance building

Additional case studies

Client company logo
Fast-casual restaurant chain completes minority recapitalization
Relationship since 2014
See the full story
Client company logo
Polar Beverages, a family that grows together
Relationship since 2001
See the full story
Client company logo
Centerspace refinances bank debt
Relationship since 2019
See the full story

Meet our team

See all people
Right arrow
Elyssa McMullen headshot
Elyssa McMullen
Senior Vice President
973.802.6386
Email
Credit Tenant Lease
Right arrow
Caity McLaughlin headshot
Caity McLaughlin, CFA
Vice President
973.367.5378
Email
Credit Tenant Lease

Perspectives

More than meets the eye: A closer look at the most commonly used type of capital.
The Prudential Private Capital Guide to Senior Debt.
Learn More
You might also like