Thursday, May 21, 2015

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.

Friday, May 8, 2015

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.