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.

NBS Financial Secures $18M Deal for Student Housing

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 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.  

NBS Financial Completes $5.6M Refi in 32 Days

NBS Financial Services’ Mike Wood, Principal, Director of Seattle Production and Associate Finance Officer Austin Johnson have arranged $5.6 million in refinancing for Opus Seaway Commerce Center, a 99,222 sf manufacturing building. NBS Financial represented the lender, Jefferies LoanCore, LLC. Rainer Properties, LLC was the borrower.

Opus Seaway Commerce Center 

Built in 1996 by the national developer Opus, the Opus Seaway Commerce Center is a multi-tenant industrial building located at 2300 Merrill Creek Parkway in Everett, Washington. Rainer Properties purchased the property in 2011 and it has since become fully leased with its most recent tenant, Giddens Industries, scheduled to move in January 2015. Yet, the seemingly straightforward refinance was not without a challenge.

“We closed within 32 days,” explained Mike Wood. “This was due to the fact the borrower had an existing loan that was maturing October 31, 2014.”

With the building 100% occupied and a sufficient remaining term on the tenants’ leases, Wood and Johnson were able to structure a 5-year fixed rate term and 30-year amortization.

NBS Financial Arranges $7.4M in Acquisition Financing

NBS Financial Services’ Principal Mike Wood and Associate Finance Officer Austin Johnson have secured $7.4 million in acquisition financing for the Market Square Building, a 45,247 square foot historic property in downtown Seattle, Washington. NBS Financial represented both the lender as well as the borrower, 1415 Western, LLC.

NBS Financial was able to deliver a quick closing date within 35 days of application. However, the fast turnaround was not without its share of obstacles. The building will incur significant tenant rollover within the next three years. In addition, the financing was at a high price per square foot with an aggressive cap rate. The deal required a lender familiar with the local market.

“This is a quintessential Seattle building,” Mike Wood explained. “The lender was confident in potential rental growth when the tenants’ leases expired.”

Market Square was built in 1908 at 1415 Western Avenue in the heart of the Waterfront district. Only two blocks from Pike Place Market, the creative office building has undergone extensive renovations in recent years. 

Market Square

NBS Financial Secures $20.75M

NBS Financial Services’ Principal Mike Wood and Associate Finance Officer Austin Johnson have arranged $20.75 million in financing for the Esterline building, a 216,183 sf Class A manufacturing property in Everett, Washington. NBS Financial represented State Farm Insurance Co., a lender based in Bloomington, Illinois. Capstone PF, LLC was the borrower.

The successful transaction was not without its challenges. Foremost, the borrower was seeking a long-term, fully amortizing loan for a non-investment grade tenant. The deal was also a high loan per square foot at approximately $95. Additionally, the lender’s collateral was on an unsubordinated ground lease with Snohomish County, which is a typical deterrent for many lenders.

The Esterline Building

“A single tenant deal obviously carries more risk, but any initial hesitation by the lender was overcome by the strong sponsorship and the institutional grade quality of the building,” explained Wood.

Built in 2009, the Esterline building is LEED certified and features 50,000 sf of ground-floor office space, six loading docks and 26-foot clear heights. The property is 100% occupied by the manufacturer, Korry's Electronics, a subsidiary of Esterline. The Esterline building serves as their headquarters.

“The lender was not only comfortable, but confident in the Esterline building’s enduring stability in the market. It was an attractive investment,” said Wood.

Wood was able to structure the loan with a 20-year term and 20-year amortization and the borrower locked an interest rate in the 4 percent range. 

NBS Financial Completes $8.5M Refi

NBS Financial Services’ Mike Wood, Principal and Financial Analyst Austin Johnson have arranged $8.5 million in refinancing for Kirkland Waterfront Market, a 23,957 sf mixed-use building in Kirkland, Washington. NBS Financial represented Homestreet Bank, a lender based in Seattle.

Located a block from scenic Lake Washington at 130 South Lake Street, Kirkland Waterfront Market features both ground level retail and 2^nd floor office space. With the property 30% owner occupied, and the fact that the borrower needed a full leverage loan at a very high loan per square foot, it was a challenge to get lenders on board. There was additional risk in the fact that the collateral was part of a condo structure.

Despite these obstacles, Wood and Johnson were able to successfully structure a 10-year fixed rate term and 30-year amortization.

“Kirkland Waterfront Market was not a typical investment for our lenders because of its mixed use space and the condo structure,” Wood remarked. “But as a local lender, Homestreet Bank understood the irreplaceable location and the strength of the market. We were able to provide full proceeds with pre-payment flexibility at a competitive rate.”

Kirkland Waterfront Market

University District Building Secures $9M Refi

NBS Financial Services President Ken Griggs and Finance Officer Paddy Ryan have secured $9 million in refinancing for the 79,513 sf University District Building in Seattle, WA. Though the loan originated in Portland, Griggs and Ryan also collaborated with NBS Financial Services’ Mike Wood, Principal and Director of Seattle Production.  NBS Financial represented the lender, Riversource Investments.

University District Building in Seattle

Located in the heart of the ‘U District’ and significantly occupied by the University of Washington, the five-story building shares in the charm of its eclectic neighborhood full of shopping, restaurants and historic architecture. Its strong community presence made its option to refinance all the more attractive to Riversource Investments.

“This building garners a lot of confidence because of its prime location and affiliation,” Griggs said. “It was a straightforward cash-out refinance which allowed the University District Building owners to reinvest in other opportunities.”

NBS Financial was able to structure the loan with a ten year term and 25-year amortization and the borrower locked in a sub 5 percent interest rate.

NBS Financial Completes $5.6 Refi

NBS Financial Services’ Mike Wood, Principal, Director of Seattle Production and Financial Analyst Austin Johnson have arranged $5.6 million in nonrecourse refinancing for Nelson Johnson 201, a 87,600 sf Class-A warehouse distribution center. CMFG Life Insurance Company, located in Madison, Wisconsin was the lender.

Nelson Johnson 201

Nelson Johnson Development, an experienced local developer, constructed this project in 2008 and had 75% of the project leased upon its completion. Placing permanent debt after construction proved to be challenging due to the weak leasing market during the Great Recession and existing remaining vacancy. However, reaching stabilization in August 2013, NBS Financial was able to go to market and CMFG Life Insurance Company sought the attractive mortgage opportunity with a competitive quote.

 “In order to refinance, Nelson Johnson 201 needed a lender who understood the strength of the Eastside Industrial market and that its former leasing challenges stemmed from weathering the recession,” Wood said. “CMFG Life Insurance Company was the perfect fit.”

With the building 100% occupied and a sufficient remaining term on the tenants’ leases, Wood and Johnson were able to structure a 10-year fixed rate term and 25-year amortization.