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| 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 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.
