NBS Financial Services President Ken Griggs and Finance Officer Paddy Ryan have secured $41.74 million in permanent construction financing for Pearl West, Portland’s first speculative office building post-recession. NBS Financial represented the lender, Washington Capital Advisors, a pension fund advisor for labor unions. Walter C. Bowen of BPM Real Estate Group is the developer, and BDC/NW Irving, LLC is the borrower.
Washington Capital Advisors’ involvement was imperative for the nine-story, 154,011 sf office building in becoming a reality.
With fundamentals of a tightened office market underscoring a strong need for immediate new development, the proposal for Pearl West was announced in January 2014. Though Pearl West is the first new office project to break ground post-recession, competition is certain. Over the past 12 months, Portland’s healthy economy has attracted many industries, especially creative businesses which are projected to bulk up the majority of the local job market over the next decade. Accommodating this surge in growth was limited by little to no new construction in the Central Business District (CBD). Thus traditional office buildings have been forced to incentivize their space to remain competitive and deter tenants’ flight to the suburbs. Central city office vacancy has only tightened with NAI Norris, Beggs & Simpson reporting a robust 8.15% for the Pearl District during Second Quarter.
The Class A office building, featuring ground floor retail and cutting-edge amenities, is slated to complete by early 2016. The half-block building corners Irving Street, which is reserved for pedestrian-only traffic and serves as an arterial vein into the heart of the Pearl District and Downtown Portland. Pearl West has already secured two lead tenants and its lease appeal is gaining momentum well before its ground breaking ceremony on July 18.