NBS Financial Completes $5.6 Refi

NBS Financial Services’ Mike Wood, Principal, Director of Seattle Production and Financial Analyst Austin Johnson have arranged $5.6 million in nonrecourse refinancing for Nelson Johnson 201, a 87,600 sf Class-A warehouse distribution center. CMFG Life Insurance Company, located in Madison, Wisconsin was the lender.

Nelson Johnson 201

Nelson Johnson Development, an experienced local developer, constructed this project in 2008 and had 75% of the project leased upon its completion. Placing permanent debt after construction proved to be challenging due to the weak leasing market during the Great Recession and existing remaining vacancy. However, reaching stabilization in August 2013, NBS Financial was able to go to market and CMFG Life Insurance Company sought the attractive mortgage opportunity with a competitive quote.

 “In order to refinance, Nelson Johnson 201 needed a lender who understood the strength of the Eastside Industrial market and that its former leasing challenges stemmed from weathering the recession,” Wood said. “CMFG Life Insurance Company was the perfect fit.”

With the building 100% occupied and a sufficient remaining term on the tenants’ leases, Wood and Johnson were able to structure a 10-year fixed rate term and 25-year amortization.