Hinckley Allen represented United Therapeutics Corporation (“UTC”), a NASDAQ publically-traded U.S. biotech company, in connection with a long- term ground lease with the City of Concord, New Hampshire for the construction of a hangar for UTC’s corporate jet and other aircraft.

The hangar was built in connection with UTC’s ongoing expansion of its research, development and distribution of 3D-printed human organs. UTC will use the Concord hangar as part of its distribution network of its organs for organ transplants along the eastern seaboard.

The City of Concord will use the rent from the ground lease to help pay for runway improvements at the airport.

Ground leases are different from typical building leases in that the tenant leases the land only and then constructs its own building on the leased land. Special issues in ground leases often include financing, end of term requirements, insurance, maintenance responsibilities and risk allocation.

Of special interest is the fact that the UTC hangar is the world’s first carbon net zero airplane hangar. The hangar structure and truss system were built entirely with glulam, which is a type of engineered wood comprised of glued-together wood panels and pieces. The engineered wood is as strong as steel, locks away tons of carbon and avoids the carbon pollution generated when making steel and concrete.