Friday, November 22, 2013

NBS Financial Arranges $39M in Acquisition Financing for FedEx Building Redmond

NBS Financial ServicesMike Wood, Principal, Director of Seattle Production has arranged $39 million in acquisition financing for a 210,321 sf FedEx industrial property in Redmond, Washington.

State Farm Life Insurance, located in Bloomington, Illinois, is the lender. The transaction proved to be challenging in regards to the fact that it was a single non-investment grade tenant requiring a high loan per square foot at approximately $185. This is a sharp contrast to the typical $100-150 valuation for industrial product, Wood said. In addition to these challenges, FedEx Corporation didn’t guarantee the lease as the tenant is only a subsidiary.

Despite these challenges, Wood was able to structure the loan with a 20-year term and 20-year amortization and the borrower locked in a sub 4 percent interest rate.

“The borrower requested a long-term fully amortizing loan in order to lock-in a low interest rate and avoid refinancing,” Wood said. “If the buyer sought the same deal in the current market, the rate today would be an estimated 100 basis points higher.”

NBS Financial Arranges $35M in Refinancing for Von Karman Plaza

Norris,Beggs & Simpson Financial Services President Ken Griggs and Finance Officer Paddy Ryan have arranged a $35 million refinance loan for  Von Karman Plaza, a 241,539 sf retail property in Irvine, California.
Harsch Investment Corp. is the underlying borrower of Von Karman, LLC and ING Investment Management, out of Atlanta, is the lender.
Prior to the refinancing, the Von Karman Plaza was in the midst of repositioning itself due to several retailers vacating large blocks of space, including Sam’s Club. After major renovations and reintroduction of the property to the market, the borrower was able to bring in new anchor tenants like Wal-Mart, filling up a majority of the property’s vacancy. At the time of funding, a block of unoccupied space remained, but ING had confidence in filling the outstanding occupancy and was able to structure a solution. The owner seized the opportunity to refinance, which then would help fund the final renovations.

 “Even though there was a considerable vacancy, ING Investment Management was attracted to the borrower’s efforts to reposition the property and its leasing efforts to date,” Griggs said. “ING was confident that the borrower would fill the remaining vacancy.”
Griggs and Ryan were able to structure a favorable refinance locking in a low interest rate for a 10-year term and 30-year amortization with an attractive level of proceeds to meet the borrower’s needs.

Monday, November 4, 2013

Hering Speaks About Portland Commercial Real Estate Finance on KXL Business Briefing

With construction restarting on Portland's Park Avenue West tower last week, the spotlight is once again on Portland's commercial real estate market, particularly downtown. Our Blake Hering was able to weigh in on commercial real estate finance in an interview on KXL's Business Briefing yesterday with host Brian Bushlach. Click here to listen to the podcast.