NBS Companies positions itself for growth

With the ever-changing commercial real estate climate, 83-year-old Norris, Beggs & Simpson made a bold move to enhance its competitive advantages and position itself for future growth. The company has sold its brokerage division and will be transferring many property management accounts to Colliers International in order to focus on the capital markets divisions of the company, Norris, Beggs & Simpson Financial Services and Morrison Street Capital.

Rance Gregory, CEO

Norris, Beggs & Simpson Companies, the new holding company, will be reorganized with two wholly-owned subsidiaries, Norris, Beggs & Simpson Financial Services and Morrison Street Capital. The new holding company’s leadership will include: Rance Gregory, CEO of Norris, Beggs & Simpson Companies and Morrison Street Capital, working together with COO Jan Robertson.  Ken J. Griggs will continue as President of NBS Financial Services and Marcus Parker has been promoted to President of Morrison Street Capital. With this reorganization, the company has added new shareholders, Morrison Street Capital team members Justin Dennett, Dave Dewey and David Tindall.

“After much consideration, we have decided to dedicate our resources to expanding the higher growth segments of our company. Our recent openings of NBS Financial’s mortgage banking office in Phoenix and Morrison Street Capital’s office in New York were part of this strategy. And we will continue to expand over the next year," explains Gregory.

The mortgage lending and servicing division, NBS Financial Services, will continue its current operations with plans to expand its market share. NBS Financial had a record year in 2014 closing over $560 million in loans and could close as much as $700 million in 2015. With a nearly $2 billion servicing portfolio, and support from a national platform, Strategic Alliance Mortgage (SAM), an affiliation of 22 independently-owned companies located in 36 markets throughout the country, NBS Financial is one of the leading mortgage banking companies in the region.

The Morrison Street Capital division was founded by Rance Gregory in 2002 and places investment capital on behalf of the Morrison Street Series of private equity funds. Morrison Street Capital is an active investor in small balance commercial real estate transactions in the forms of equity, mezzanine debt, preferred equity, B-notes and commercial mortgage backed securities.  From its offices in Portland and New York, the company is currently focused on providing up to 10-year term mezzanine loans and preferred equity on multiple property types nationwide.

"This is a company of great history and these changes best position Norris, Beggs & Simpson to thrive for many years to come," Gregory summarizes.  "We are excited to continue to improve and grow the scope of our product offerings for our clients and lenders."

NBS Financial Arranges $66M for Montgomery Park

NBS Financial Services President Ken Griggs and Finance Officer Paddy Ryan have secured $66 million in refinancing for Montgomery Park, Portland’s second largest office building at 9-stories high and 687,556 square feet.

NBS Financial represented the lender, Voya Financial, a premier retirement, investment and insurance company. Montgomery Park, LLC, a subsidiary of the Bill Naito Company, was the borrower.

The successful transaction was not without its challenges. Tenant turnover at the time of funding is a typical deterrent for many lenders, especially with large spaces to backfill. However, the lender remained confident in Montgomery Park’s outstanding track record and prime location just northwest of the city core.

Montgomery Park 

“Montgomery Park is a strong asset with a rich, local history,” explained Ken Griggs. “It’s unique to the downtown market because it offers amenities often found in the suburban market like large, contiguous floor plates, onsite parking, conference rooms and banquet facilities.”

Located at 2701 NW Vaughn Street, Montgomery Park was built in 1921 as the former Montgomery Ward mail-order catalog warehouse and department store. It was renovated in 1986 as a multi-tenanted, mixed-use property. Listed on the National Register of Historic Places, Montgomery Park’s neon red sign is a hallmark of Portland’s skyline. 

Refinancing was placed through Voya Financial as a cash-out loan, which will help fund future energy savings projects for the property.

“We were able to champion the property’s best interests and secure an advantageous interest rate,” added Griggs.

Griggs and Ryan structured the loan with a 20-year term and 25-year amortization schedule. 

Rabban Joins NBS Financial as VP with New Phoenix Office

Ted Rabban, Vice President 

Ted Rabban has joined Norris, Beggs & Simpson Financial Services as their newest Vice President. His appointment is concurrent with the expansion of NBS Financial in the Phoenix market.

As a Phoenix native, Ted has more than 30 years’ experience in the commercial real estate industry. At NBS Financial, Ted works closely with our highly qualified loan origination staff in attaining the borrowing and investment needs of our clients, which include major life companies, banks, conduits, REITs and pension funds.

Ted’s industry expertise is owed to extensive experience with project financial analysis, acquisitions, dispositions, asset management, leasing and operations of various real property types. He has also been responsible for land planning and entitlement for various institutional clients and individual investors. His career highlights include the initial development of the 175-acre Fountainhead Corporate Park, a one million square foot mixed-use campus. Fountainhead Corporate Park offers Class A office, a resort hotel, 300 apartment units and serves as the Tempe operations center for State Farm Insurance.

In business since 1932 and headquartered in Portland, Oregon, NBS Financial is a division of Norris, Beggs & Simpson Companies. NBS Financial provides commercial real estate capital to borrowers and investors seeking financing for property acquisitions, refinancing, equity, mezzanine or bridge capital, as well as joint venture opportunities.

Henderson of NBS Financial Closes on Three Deals Totaling $40.2M

NBS Financial Services’ Associate Vice President Jeff Henderson has arranged a combined total of $40,226,000 in a recent string of significant transactions.

In a deal representing both the bank and borrower, NBS Financial secured $21.937 million in permanent financing for the 149,798 sf Point Plaza East Office Campus in Southeast Tumwater, Washington. The borrower requested maximum leverage to take advantage of favorable interest rates, yet a vacant unit temporarily detracted from the asset’s true value. NBS Financial overcame this obstacle by providing the lender credible support lease-up will happen in the near term, and structured additional proceeds in the event it does.

In a deal representing Fannie Mae, NBS Financial provided $16.139 million in permanent financing to Terrace Heights Apartments, a 160-unit residential community in Mountlake Terrace, Washington. The borrower was able to lock a low interest non-recourse loan months before closing and before rates spiked.

NBS Financial closed on $2.15 million in 15 year fixed rate financing from a life insurance company for the Northlake Building, a 6,798 sf mixed-use property on Lake Union in Seattle. Despite the challenge of a high loan per square foot and a marina component, NBS Financial was able to match a lender familiar and comfortable with the property’s irreplaceable location. 

From left to right: Point Plaza East Office Campus, Terrace Heights Apartments, Northlake Building

Jurczak Joins NBS Financial in Portland

Joe Jurczak, Financial Analyst

Joe Jurczak joined the NBS Financial Services Team in 2015. He works closely with other members of the loan origination team to secure capital to satisfy our clients’ needs through our exclusive relationships with life companies, conduits, REITs and pension funds.

With over 8 years’ experience in commercial real estate finance, Joe most recently worked for Walker & Dunlop in Walnut Creek, CA as an underwriting analyst and specialized in structuring Fannie Mae, Freddie Mac, and FHA/HUD loans for profit and nonprofit borrowers. He has special interest in the long-term care industry and its financing needs. 

Lemley Joins NBS Financial Services as Financial Analyst

Connor Lemley, Financial Analyst

Connor Lemley has joined NBS Financial Services in Seattle as a Financial Analyst. As a member of the loan origination team, he helps satisfy the capital needs of our clients through exclusive relationships with life insurance companies, conduits and various other lenders.

As a graduate from the University of Washington with a degree in political science, Lemley gained experience working for a political tech startup in Denver and was also the Field Organizer for Seattle Mayor Ed Murray's successful 2013 campaign. Shortly thereafter, Lemley worked for McKee & Schalka Real Estate Appraisal Services. As a Commercial Real Estate Appraiser, Connor was responsible for the valuation of real property throughout the Puget Sound area. His portfolio included a spectrum of office, retail, industrial, multifamily and special purpose developments.

Lemley completed additional post grad studies at the Appraisal Institute and earned certification in Real Estate Statistics and Finance. 

NBS Financial Arranges $52M for FedEx Portfolio

NBS Financial Services’ Senior Vice President Todd B. Harding and Finance Officer Mick Stapleton have arranged a combined $52,026,000 in acquisition financing for three, newly constructed FedEx Ground distribution centers. The portfolio included $8.6M for a 151,088 sf facility in Wichita Falls, Texas, $12.193M for a 254,353 sf facility in Spartanburg, South Carolina, and $31.233M for a 312,539 sf facility in Chandler, Arizona.

NBS Financial represented the borrower, TIC – RI Pullman, LLC, RI Cascade, LLC, RI Elk Grove, LLC (Rood TICs), in their need to satisfy a 1031 exchange. Funding was provided by State Farm Insurance Company through a correspondent relationship of NBS Financial’s.

“The lender was confident in the strength of the sponsorship and worked with the borrower as construction delays occurred,” said Todd B. Harding. “Rood Investments is an established team and this acquisition reflects their commitment to carefully selected, quality properties.”  

The loans were conservatively leveraged with a 10-year term and 30-year amortization.

NBS Financial Arranges $19.4M for Apartment Portfolio

Westlakes Apartments

NBS Financial Services’ Principal and Director of Seattle Production Mike Wood and Associate Finance Officer Austin Johnson have arranged a combined $19,418,000 in financing for a multifamily portfolio totaling 291 units. NBS Financial represented both the borrower and lender. Funding was provided by Fannie Mae through NBS Financial’s correspondent relationship with Walker Dunlop. 

The portfolio consisted of two, older Class-B properties; Westlakes Apartments, a 181-unit complex in Olympia, WA, and Poplar Lanes Apartments, a 110-unit complex in Lynnwood, WA.

Poplar Lanes Apartments

Though successful, the transaction was not without its share of obstacles. With zero debt on either property, the borrower requested max leverage. Lenders are typically conservative about full cash-out loans, especially for older buildings, which may be assessed as riskier. Yet, NBS Financial was able to overcome these challenges and secure a 75% loan to value at attractive terms.

“After an exhaustive search of the market, we identified the most competitive lender and the borrower locked in a sub 4% interest rate. If the Borrower were to go out to the market today, the interest rate would be approximately 40 basis points higher,” noted Mike Wood.

Wood and Johnson structured a 12-year term and 30-year amortization.

NBS Financial Secures $18M Deal for Student Housing

The Douglas

NBS Financial Services’ Principal and Director of Seattle Production Mike Wood and Associate Finance Officer Austin Johnson have arranged $18 million in permanent financing for the Douglas, an 81-unit, 259-bed 105,672 sf student housing complex on Seattle University’s campus. NBS Financial represented the lender, Nationwide Insurance.

The successful transaction was not without its challenges. The lender’s collateral was on an unsubordinated ground lease, which is a typical deterrent for many lenders. Another potential limitation was the building’s special use as student housing. However, the lender’s concerns were mitigated by the Douglas’ prime location on Seattle University’s established 124-year-old campus, the school’s increasing need for more student housing and the conservative loan request. 

“The lender was confident in the strength of the borrower and the long-term stability of the Douglas,” said Mike Wood.

Wood and Johnson were able to structure a competitive 20-year term and 20-year amortization and the borrower locked in a sub 4 percent interest rate.  

NBS Companies Announce Top Producers of 2014

From Left to Right, Front Row: Jennifer Medak, Ken Griggs, John Medak, Traci McCauley;
Back Row: Robert Black, Scott MacLean, Sean Turley 

Norris, Beggs & Simpson Companies announced its top producers of 2014 at the commercial real estate firm’s annual Awards Banquet on January 24.

Rounding out NAI Norris, Beggs & Simpson’s Top 5 Producers, Senior Vice Presidents Jennifer Medak and John Medak, who specialize in office sales and leasing, earned top honors as #1, and were also the company’s leading dealmakers for the year, which is measured by the number of transactions closed. Multifamily investment sales broker and Senior Vice President Robert Black was named #3, having been the Top Producer for the past two consecutive years. Senior Vice President Scott MacLean, an expert in the leasing and sales of industrial/flex properties, ranked 4^th and downtown office broker and Senior Vice President Sean Turley came in 5^th.

Vice President and Certified Property Manager Traci McCauley, who manages an impressive portfolio of several industrial properties, was NAI NBS’ Property Manager of the Year. She previously won this honor in 2007 and 2008.

President Ken Griggs was NBS Financial Services’ Finance Officer of the Year, as well as the overall top producer in the entire company.

The event also highlighted production across the company in 2014. NAI Norris, Beggs & Simpson’s brokers completed 755 deals worth over $413.3 million, sold 3.2 million sf and 182 acres, and leased 4.2 million sf. Its property managers managed 12 million sf, 147 acres and 1,334 residential units all valued at $1.8 billion. NBS Financial Services originated 75 loans worth over $560 million, and the loan servicing department serviced approximately 382 loans valued at $1.8 billion.

As a Partner in the company, Ken Griggs has been in the real estate investment industry since 1984. He joined NBS Financial Services in 1993. In 2014, he closed 28 loans grossing more than $249 million. This includes the $41.74 permanent construction financing for Pearl West, Portland’s first speculative office building post-recession.

John Medak began his career at NAI Norris, Beggs & Simpson in 1998 after working for CB Richard Ellis in the Bay Area. He then teamed up with his sister, Jennifer Medak, who joined the firm in 1999 after an established career with Colliers International. Together, they’ve been honored as Top Producers multiple years and in 2014 they grossed approximately $86 million in total deal consideration. They completed Umpqua Bank’s 70,000 sf lease renewal, Interface Engineering’s sublet at First and Main and also represented the landlord for over 100,000 sf at Nimbus Corporate Center.

Robert Black has been a member of NAI Norris, Beggs & Simpson’s Capital Asset Group since 1999. He was Top Producer in 2012 and 2013. In 2014, he brokered the sale of the historic 52,379 sf Sovereign Hotel as well as the $1.64 million dollar sale of the Overland Warehouse Company building. It was a very successful year as he grossed approximately $18 million in total deal consideration.

Scott MacLean joined NAI Norris, Beggs & Simpson in 1996 and has since represented many large industrial tenants. In 2014, he grossed approximately $118 million in total deal consideration which included his Rite Aid Lease renewal for 500,000 sf and his $3.6 million dollar sale of NW 16^th & Overton.

Sean Turley joined NAI Norris, Beggs & Simpson in 1999 and has been a frequent Top 5 Producer. He was recognized as the company’s Top Producer in 2010. In 2014,  he brokered the 90,000 sf lease renewal of ADP Plaza and the 10,000 sf lease for Gordon & Rees Law Firm at Bank of America Financial. 

Traci McCauley joined NAI Norris, Beggs & Simpson in 2000. She is a Certified Property Manager (CPM) and a Certified Green Broker, as well as a licensed broker in Oregon and Washington.  As a three-peat Property Manager of the Year, she oversees approximately 2 million sf of industrial properties.

NBS Financial Delivers $11.3M Refi

NBS Financial Services’ Senior Vice President Wally Harding and Finance Officer Mick Stapleton have arranged $11.3 million in refinancing for Northpointe Office Plaza, a 108,432 sf office building. NBS Financial represented the lender, Genworth Life Insurance, as well as the borrower, Northpointe Office Building, LLC.

Northpointe Office Plaza 

Built in 1995, Northpointe Office Plaza is located at 605 E Holland Avenue, just north of downtown Spokane and part of the growing Wandermere suburb. It is fully leased with both traditional office and medical users. Over the past few years, Wandermere has become a major attraction for new office and retail development.

“The borrower had an existing loan maturing soon,” explained Wally. “Northpointe Office Plaza is a typically sought after mortgage investment for many of our lenders, especially newer properties in very good locations. As Genworth’s leading national producer for 2014, we were able to deliver the refinancing with quick turnaround.”

With the building 100% occupied and a sufficient remaining term on the tenants’ leases, Harding and Stapleton were able to structure a 20-year term and 20-year amortization.