NBS Companies positions itself for growth

With the ever-changing commercial real estate climate, 83-year-old Norris, Beggs & Simpson made a bold move to enhance its competitive advantages and position itself for future growth. The company has sold its brokerage division and will be transferring many property management accounts to Colliers International in order to focus on the capital markets divisions of the company, Norris, Beggs & Simpson Financial Services and Morrison Street Capital.

Rance Gregory, CEO

Norris, Beggs & Simpson Companies, the new holding company, will be reorganized with two wholly-owned subsidiaries, Norris, Beggs & Simpson Financial Services and Morrison Street Capital. The new holding company’s leadership will include: Rance Gregory, CEO of Norris, Beggs & Simpson Companies and Morrison Street Capital, working together with COO Jan Robertson.  Ken J. Griggs will continue as President of NBS Financial Services and Marcus Parker has been promoted to President of Morrison Street Capital. With this reorganization, the company has added new shareholders, Morrison Street Capital team members Justin Dennett, Dave Dewey and David Tindall.

“After much consideration, we have decided to dedicate our resources to expanding the higher growth segments of our company. Our recent openings of NBS Financial’s mortgage banking office in Phoenix and Morrison Street Capital’s office in New York were part of this strategy. And we will continue to expand over the next year," explains Gregory.

The mortgage lending and servicing division, NBS Financial Services, will continue its current operations with plans to expand its market share. NBS Financial had a record year in 2014 closing over $560 million in loans and could close as much as $700 million in 2015. With a nearly $2 billion servicing portfolio, and support from a national platform, Strategic Alliance Mortgage (SAM), an affiliation of 22 independently-owned companies located in 36 markets throughout the country, NBS Financial is one of the leading mortgage banking companies in the region.

The Morrison Street Capital division was founded by Rance Gregory in 2002 and places investment capital on behalf of the Morrison Street Series of private equity funds. Morrison Street Capital is an active investor in small balance commercial real estate transactions in the forms of equity, mezzanine debt, preferred equity, B-notes and commercial mortgage backed securities.  From its offices in Portland and New York, the company is currently focused on providing up to 10-year term mezzanine loans and preferred equity on multiple property types nationwide.

"This is a company of great history and these changes best position Norris, Beggs & Simpson to thrive for many years to come," Gregory summarizes.  "We are excited to continue to improve and grow the scope of our product offerings for our clients and lenders."

NBS Financial Arranges $66M for Montgomery Park

NBS Financial Services President Ken Griggs and Finance Officer Paddy Ryan have secured $66 million in refinancing for Montgomery Park, Portland’s second largest office building at 9-stories high and 687,556 square feet.

NBS Financial represented the lender, Voya Financial, a premier retirement, investment and insurance company. Montgomery Park, LLC, a subsidiary of the Bill Naito Company, was the borrower.

The successful transaction was not without its challenges. Tenant turnover at the time of funding is a typical deterrent for many lenders, especially with large spaces to backfill. However, the lender remained confident in Montgomery Park’s outstanding track record and prime location just northwest of the city core.

Montgomery Park 

“Montgomery Park is a strong asset with a rich, local history,” explained Ken Griggs. “It’s unique to the downtown market because it offers amenities often found in the suburban market like large, contiguous floor plates, onsite parking, conference rooms and banquet facilities.”

Located at 2701 NW Vaughn Street, Montgomery Park was built in 1921 as the former Montgomery Ward mail-order catalog warehouse and department store. It was renovated in 1986 as a multi-tenanted, mixed-use property. Listed on the National Register of Historic Places, Montgomery Park’s neon red sign is a hallmark of Portland’s skyline. 

Refinancing was placed through Voya Financial as a cash-out loan, which will help fund future energy savings projects for the property.

“We were able to champion the property’s best interests and secure an advantageous interest rate,” added Griggs.

Griggs and Ryan structured the loan with a 20-year term and 25-year amortization schedule. 

Rabban Joins NBS Financial as VP with New Phoenix Office

Ted Rabban, Vice President 

Ted Rabban has joined Norris, Beggs & Simpson Financial Services as their newest Vice President. His appointment is concurrent with the expansion of NBS Financial in the Phoenix market.

As a Phoenix native, Ted has more than 30 years’ experience in the commercial real estate industry. At NBS Financial, Ted works closely with our highly qualified loan origination staff in attaining the borrowing and investment needs of our clients, which include major life companies, banks, conduits, REITs and pension funds.

Ted’s industry expertise is owed to extensive experience with project financial analysis, acquisitions, dispositions, asset management, leasing and operations of various real property types. He has also been responsible for land planning and entitlement for various institutional clients and individual investors. His career highlights include the initial development of the 175-acre Fountainhead Corporate Park, a one million square foot mixed-use campus. Fountainhead Corporate Park offers Class A office, a resort hotel, 300 apartment units and serves as the Tempe operations center for State Farm Insurance.

In business since 1932 and headquartered in Portland, Oregon, NBS Financial is a division of Norris, Beggs & Simpson Companies. NBS Financial provides commercial real estate capital to borrowers and investors seeking financing for property acquisitions, refinancing, equity, mezzanine or bridge capital, as well as joint venture opportunities.

Henderson of NBS Financial Closes on Three Deals Totaling $40.2M

NBS Financial Services’ Associate Vice President Jeff Henderson has arranged a combined total of $40,226,000 in a recent string of significant transactions.

In a deal representing both the bank and borrower, NBS Financial secured $21.937 million in permanent financing for the 149,798 sf Point Plaza East Office Campus in Southeast Tumwater, Washington. The borrower requested maximum leverage to take advantage of favorable interest rates, yet a vacant unit temporarily detracted from the asset’s true value. NBS Financial overcame this obstacle by providing the lender credible support lease-up will happen in the near term, and structured additional proceeds in the event it does.

In a deal representing Fannie Mae, NBS Financial provided $16.139 million in permanent financing to Terrace Heights Apartments, a 160-unit residential community in Mountlake Terrace, Washington. The borrower was able to lock a low interest non-recourse loan months before closing and before rates spiked.

NBS Financial closed on $2.15 million in 15 year fixed rate financing from a life insurance company for the Northlake Building, a 6,798 sf mixed-use property on Lake Union in Seattle. Despite the challenge of a high loan per square foot and a marina component, NBS Financial was able to match a lender familiar and comfortable with the property’s irreplaceable location. 

From left to right: Point Plaza East Office Campus, Terrace Heights Apartments, Northlake Building

Jurczak Joins NBS Financial in Portland

Joe Jurczak, Financial Analyst

Joe Jurczak joined the NBS Financial Services Team in 2015. He works closely with other members of the loan origination team to secure capital to satisfy our clients’ needs through our exclusive relationships with life companies, conduits, REITs and pension funds.

With over 8 years’ experience in commercial real estate finance, Joe most recently worked for Walker & Dunlop in Walnut Creek, CA as an underwriting analyst and specialized in structuring Fannie Mae, Freddie Mac, and FHA/HUD loans for profit and nonprofit borrowers. He has special interest in the long-term care industry and its financing needs. 

Lemley Joins NBS Financial Services as Financial Analyst

Connor Lemley, Financial Analyst

Connor Lemley has joined NBS Financial Services in Seattle as a Financial Analyst. As a member of the loan origination team, he helps satisfy the capital needs of our clients through exclusive relationships with life insurance companies, conduits and various other lenders.

As a graduate from the University of Washington with a degree in political science, Lemley gained experience working for a political tech startup in Denver and was also the Field Organizer for Seattle Mayor Ed Murray's successful 2013 campaign. Shortly thereafter, Lemley worked for McKee & Schalka Real Estate Appraisal Services. As a Commercial Real Estate Appraiser, Connor was responsible for the valuation of real property throughout the Puget Sound area. His portfolio included a spectrum of office, retail, industrial, multifamily and special purpose developments.

Lemley completed additional post grad studies at the Appraisal Institute and earned certification in Real Estate Statistics and Finance.