NBS Financial Services’
Principal Mike Wood
and Associate Finance Officer Austin Johnson have
arranged $20.75 million in financing for the Esterline building, a 216,183 sf
Class A manufacturing property in Everett, Washington. NBS Financial
represented State Farm Insurance Co., a lender based in Bloomington, Illinois.
Capstone PF, LLC was the borrower.
The
successful transaction was not without its challenges. Foremost, the borrower
was seeking a long-term, fully amortizing loan for a non-investment grade
tenant. The deal was also a high loan per square foot at approximately $95. Additionally, the lender’s collateral was on an unsubordinated ground lease
with Snohomish County, which is a typical deterrent for many lenders.
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| The Esterline Building |
“A single
tenant deal obviously carries more risk, but any initial hesitation by the
lender was overcome by the strong sponsorship and the institutional grade
quality of the building,” explained Wood.
Built in
2009, the Esterline building is LEED certified and features 50,000 sf of
ground-floor office space, six loading docks and 26-foot clear heights. The property is 100% occupied by the
manufacturer, Korry's Electronics, a subsidiary of Esterline. The Esterline
building serves as their headquarters.
“The lender was not only comfortable, but confident in the
Esterline building’s enduring stability in the market. It was an attractive
investment,” said Wood.
Wood was able
to structure the loan with a 20-year term and 20-year amortization and the
borrower locked an interest rate in the 4 percent range.
