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 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.