NBS Financial Services Executive Vice President Mike Wood has arranged a $4.2 million loan for a mixed-use property that was formerly a school in the Wallingford neighborhood in Seattle. The lender was Symetra Financial, one of NBS Financial’s correspondent life insurance companies. One challenge to obtaining financing was that Wallingford Center sits on land that is leased from the Seattle School District, and some lenders avoid lending on buildings with ground leases. However, the property’s desirable location in the densely populated Wallingford area, as well as its solid occupancy, made a strong case. The loan was 60 percent loan to value with an 8-year term.
“While the unsubordinated ground lease made the loan request more challenging, the lender was ultimately able to get comfortable with the real estate and the operator, which resulted in the borrower receiving very competitive loan terms,” Wood said.
The 42,177 sf Wallingford Center, which is listed on the National Register of Historic Places, was constructed in 1904 as Interlake Elementary School and served as a school until the 1970s, when it closed. The building then sat vacant for a number of years. The current owners purchased the building in 1984 and renovated it, with two floors of retail and 24 studio apartments on the top floor. The retail portion is more than 90 percent leased, and tenants include Trophy Cupcakes, Tweedy and Popp ACE Hardware, The Exploration Academy and 4 Your Eyes Only Optical.
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