Monday, August 4, 2014

NBS Financial Secures $20.75M

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.
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. 

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