Leadership Transition at NBS

NBS Financial Services is ushering in a new era in its leadership, including its first female CEO.

Jan Robertson is now CEO of NBS Companies (the umbrella company that includes NBS Financial and three other divisions), while J. Clayton Hering (previously President) is Chairman of the Board. Ken Griggs is now President of NBS Financial.

Robertson’s career path has been unique. She joined NBS in 1981 in an administrative position, and quickly rose into management, becoming a partner in 1993. She has served as CFO since 2005. Robertson is involved in many industry organizations, including IREM and NAIOP. She is also a strong supporter of arts in education, holding leadership positions in organizations such as Young Audiences and the Regional Arts & Culture Council.

“Jan is simply the best person to run this company,” Hering said. “As CFO she’s had to make tough decisions, which she has ably done, while always keeping the well-being of our employees and clients first and foremost.”

As Chairman of the Board, a newly created position, Hering continue to be involved in areas like strategic planning, mentoring, business development and community involvement, but his role in day-to-day operations, like administrative functions, will be reduced.

Ken Griggs, NBS Financial's new President, is an experienced mortgage banker and managing partner. He has been with NBS Financial since 1993, and has frequently been a company Top Producer. Blake Hering, Jr. is now Principal, Director of Portland Production, and Mike Wood is Principal, Director of Seattle Production.

“The partners who are stepping into new roles have an incredible breadth and depth of experience,” Hering said. “This new leadership structure will spread out responsibility among them, which is a win-win for both the company and our clients.”

Henderson Arranges $20.2M for Tacoma's Pacific Plaza

Finance Officer Jeff Henderson has originated $20.2 million in permanent financing for Pacific Plaza, a LEED-Platinum office and retail project in Tacoma, Washington. Pacific Plaza has been recognized for its excellence in sustainability, and won the 2010 NAIOP Sustainable Development Award, a national award for a building renovation.

The transaction provided its share of challenges, according to Henderson. The property is in a secondary market, and is a condominium with partial owner/user space, with a master lease on the ground floor consisting of a grocery store that has yet to take occupancy in an unproven market.

“This deal was among the most challenging CMBS single-asset transactions to date in the new lending world,” Henderson said.

Because of the breadth and depth of NBS Financial’s capital resource relationships across the country, Henderson was able to find the right lender for the deal.

“We had to show the lender why the increased market vacancy, due to the departure of Russell Investments, should not be a detriment in underwriting this deal,” Henderson said. “At the end of the day, this is an outstanding asset with stable income, and we helped the lender recognize that.”

As the capital markets continue to go after the best of asset class, lenders are starting to look in secondary markets for opportunities.

“There is actually a lot of money out there,” Henderson said, “and if we understand every aspect of the deal, how to mitigate risk, and add up all the components of value, we are better suited to help lenders get comfortable with the deal and help the borrower get the most dollars they can.”

Pacific Plaza, originally constructed as a parking garage, was redeveloped for office/retail use in a partnership between the City of Tacoma and Pacific Plaza Development, LLC. The renovation was completed in 2009, and sustainable features include a green roof, a rainwater collection system and an efficient heating and cooling system.

April Market Watch: Seattle Multifamily Market Poised for Growth in 2011

The Seattle metro area has one of the strongest multifamily markets in the nation, and a number of recent reports have focused on the market’s strength.

The Seattle apartment market has rebounded from the deepest recession in recent memory more quickly than many expected. At the height of the recession in fall 2009, vacancy rose to 7.2%, according to Dupre + Scott Apartment Advisors’ March 2011 Apartment Vacancy Report. Today, vacancy has fallen to 4.6%, and the company expects it to continue to decrease in the coming year. The market is showing other signs of stabilization: landlords are offering fewer concessions, and rents have begun to rise, though they haven’t yet gotten back to peak levels.

The Dupre + Scott report theorizes that persistent weakness in the single-family housing market is discouraging many from purchasing a house or condominium, which is one reason the apartment market is thriving. They expect that during 2011, apartment vacancy will continue to fall, rents will continue to rise, and concessions will essentially disappear.

Apartment Insights’ First Quarter Report provides similar predictions about the strengthening apartment market in 2011. It expects just 1,866 units to come online in 2011 and only about 2,000 in 2012. So development will ramp up during 2011, and many more units will deliver in 2013 and after.

The Seattle metro area placed fifth on Multifamily Executive’s list of the Hottest Multifamily Markets for 2011, or those where they expect the most development to occur. 3,692 multifamily permits were issued in Seattle in 2010, an impressive 57% increase over 2009.

NBS Financial Services not only arranges financing for multifamily properties, but can also secure financing for any type of commercial property, including office, industrial, retail, self-storage and hotel. In the past few years Fannie Mae & Freddie Mac have been most competitive on multifamily financing. More recently, life insurance company lenders’ spreads have compressed to be competitive with Fannie and Freddie rates. NBS Financial Services has lending relationships with life insurance companies, Fannie Mae, Freddie Mac, FHA, banks, credit unions, structured finance and specialized providers of mezzanine bridge and equity capital. With low interest rates and strong market fundamentals, now is a good time to refinance any commercial building.

Wood Arranges $4.2M for Wallingford Mixed-Use Property

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.

NBS Financial Secures $6.9M from Life Insurance Company for Sacramento Office Building

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.

Happy Anniversary, Norris, Beggs & Simpson!

Today marks the 79th anniversary of Norris, Beggs & Simpson's founding. The company was founded April 1, 1932, in the midst of the Great Depression, in Portland, Oregon. Starting out primarily as property managers, the company has grown into the full service operation it is today. For our 75th anniversary in 2007, we compiled some company history, which can be found here.