NBS Financial Services Executive Vice President Ken Griggs and Finance Officer Paddy Ryan, in our Portland office, have arranged a $6.9 million loan for an office building in the Sacramento area. The loan for the Cobblerock Office Building, a Class A, multi-tenant building in Rancho Cordova, a suburb of Sacramento, was funded by Symetra Financial, a life insurance company based in Bellevue, Washington. NBS Financial is consistently one of Symetra’s top producers nationally, and services its loans.
One unique aspect of the loan was that the property was only 82 percent occupied. In addition, two tenants occupied 79 percent of the building, with short-term lease expirations. The risk was mitigated with partial recourse, a strong submarket and tenant investment in their own tenant improvements, Griggs said.
With continuing uncertainty in the employment market and overall economy, lenders are cautious about office deals, especially in the Sacramento market, where office vacancy is estimated at between 20 and 25 percent.
“A conservative loan request with a strong borrower went a long way,” Griggs said.
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