NBS Financial Arranges $14.3M Construction/Perm Loan for Grandview Place Apartments in Vancouver, Wash.

NBS Financial Services' Blake Hering, Jr. and Jim Campbell have arranged a $14.3 million construction/permanent loan for Vancouver’s 154-unit Grandview Place Apartments. The lender was one of NBS Financial’s correspondent life insurance companies.

Grandview Place was developed by Courtesy Construction and Development and is located off of 192nd Avenue adjacent to a scenic wetland area. The project is now 97 percent leased at the rents originally projected two years ago.

“Achieving the budgeted rents in the current economic climate is an impressive testament to market acceptance of this high-quality project,” Hering, Jr. said.

Units range from an 854 sf one-bedroom, one-bath apartment to a three-bedroom, 2½-bath townhome with a two-car direct access garage. Grandview Place also features a beautifully appointed clubhouse with fitness center, pool and spa.

A construction/perm loan offers a developer a construction loan that then converts to a permanent loan after the property is completed and stabilized. Borrowers like construction/perm loans because the process is more streamlined than getting construction and permanent loans through different lenders, and because they may be able to lock in a low interest rate up-front and save on loan costs.

This is a unique transaction for NBS Financial, Hering, Jr. said. The company has arranged construction/perm loans for other property types, but this is its first for an apartment property. The majority of loans it arranges are permanent loans.

Some Positive Signs for Portland CRE During Third Quarter

This week we released our Third Quarter 2010 quarterly reports for the Portland metro area. There's no doubt that we're still seeing the impact of the recession, but the multifamily and central city office markets showed signs of improvement.

Office vacancy in Central City decreased to 12.13% with 282,442 sf absorbed, thanks to large leases at First & Main and the Meier & Frank Depot Building. Suburban vacancy remained stable at 24.06% with about 4,000 sf absorbed, the first positive absorption in the suburban office market since Third Quarter 2008.

Industrial vacancy was stable at 15.22%, with about 10,000 sf absorbed. A few large transactions occurred, including PFX Pet Supply leasing 70,000 sf at Columbia Corporate Park I in North/Northeast.

Retail vacancy decreased to 6.5%, and a few projects broke ground, including the 215,000 sf Progress Ridge Town Square between Tigard and Beaverton. Retail sales were up in August and September with the help of a strong back to school shopping season.

Multifamily was a bright spot during Third Quarter. Vacancy fell to 3.65%, the lowest it has been since Second Quarter 2008. The multifamily investment market also showed increased activity, especially for properties developed as condominiums and converted to apartments.

A PDF of all the reports can be found here.