Senior Vice President Wally
Harding has arranged $14 million in refinancing for Adirondack Lodge, a
228-unit apartment community in Spokane, Washington. Funding was provided by
Fannie Mae through Walker & Dunlop’s Jay Thomas, a Senior Vice President in
the company’s Dallas office.
Adirondack
Lodge is a Class A community in the highly desirable South Hill neighborhood of
Spokane. It features a community lodge, fitness center and swimming pool, and
is within walking distance of a variety of retail amenities, schools and public
transportation.
NBS
Financial and Walker & Dunlop have teamed up to provide financing for a
number of other apartment communities in the greater Spokane area.
Senior Vice President Wally
Harding has arranged $4.7 million in refinancing for NTP Distribution, a
108,825 sf warehouse/distribution facility in Wilsonville, Oregon. Lender
StanCorp Mortgage Investors provided a long-term, fixed-rate mortgage at a low
rate.
NTP
Distribution is an after-market provider of products, parts and accessories for
dealers in the recreational vehicle (RV) and hitch and tow industries. The
Wilsonville facility, at 27150 SW Kinsman Road, is its national corporate
headquarters and a major distribution center.
Wilsonville,
about 20 miles south of Portland, is a highly desirable growing location for
industrial space users due to its close proximity to I-5, Harding said.
The Federal Open Market Committee announced after its meeting in late January that it plans to keep interest rates near zero until 2014. This was a somewhat surprising decision, considering that unemployment fell to 8.3% in January, the fifth consecutive month it has decreased, and the economy has seen other signs of improvement in recent months. The Fed remains cautious, and could change course if unemployment falls more significantly and the American economy begins growing at a faster pace. Out of 49 economists surveyed by the Wall Street Journal recently, the majority believed that rates should be raised sooner and were concerned that keeping rates low could spur inflation.
Despite the Fed’s lack of confidence in the economy, the commercial real estate finance market has been performing well. Life insurance company lenders, NBS Financial’s major correspondent relationships, are increasing allocations for 2012. The Mortgage Bankers Association (MBA) is expecting $230 billion in commercial and multifamily mortgage origination during 2012, a 17% increase from 2011, and up to $290 billion in 2015. Although the CMBS market is still nowhere near its pre-recession heights, it has seen improvement in recent months.
NBS Financial Services Senior Vice President Todd Harding and Associate Finance
Officer Mick Stapleton have arranged $10 million for the Safeway-anchored
Hilltop Mall Shopping Center in Oregon City.
The
Safeway, which opened in November and also has a fueling station, is the
company’s first store in Oregon City in nearly 40 years. It sits on the former
site of Danielson’s Fresh Marketplace, which closed in March 2010 and was
demolished. Former Danielson’s owners Craig Danielson and Carol Suzuki own and
operate the shopping center, which comprises about 180,000 sf and includes a
movie theater, banks, restaurants and more.
Though
it was sad to see the closure of Danielson’s, a community fixture for 35 years,
Safeway is about 20,000 sf larger and employs more staff (about 150 people),
Harding said.
“The new Safeway is a great addition to Oregon City, and the community is very
excited about it,” Harding said, noting that the store’s opening was attended
by Congressman Kurt Schrader, Clackamas County Sheriff Craig Roberts and many
Safeway officials. The Safeway is also cited differently than Danielson’s
which, along with a new road and other improvements, has given the shopping
center a fresh look and feel.
Allstate,
one of NBS Financial’s newest correspondent relationships, provided the loan.
One challenge the NBS Financial team had to overcome was that some new space at
the shopping center was vacant at the time they were seeking financing. But
Allstate recognized that a strong, grocery-anchored shopping center would have
no trouble gaining tenants.
Overall, Seattle's commercial real estate market performed well during the Fourth Quarter, and we expect to see a positive year in 2012. The fact that Seattle is home to major companies like Boeing, Microsoft, Google and Amazon.com, which are consistently growing and taking more commercial space, attracts interest from investors and lenders alike.
Click here to read our January 2012 Market Watch for an overview of how Seattle's various property types performed during Fourth Quarter.
Life insurance companies are stepping up their allocations for commercial mortgages as banks have cut back on lending. That’s according to The New York Times, which highlighted this trend in an October article. According to the article, life insurance companies funded $15.7 billion worth of commercial mortgages during Second Quarter, the highest quarterly volume since 1965, when the American Council of Life Insurers began tracking this data.
The article highlights the advantages life insurers have in providing funding. They generally underwrite conservatively, meaning lending only to more credit-worthy borrowers and on quality, well-located properties. They keep loans on their balance sheets, in contrast to investment banks, which issue bonds against the loans.
Life companies also generally offer lower rates than banks on a non-recourse basis, and their portfolios tend to do well because of their conservative lending and active management. For instance, Fitch Ratings said that at the end of 2010, 99.6% of life insurance company mortgages were in good standing.
NBS Financial has cultivated relationships with life companies since our company was founded in 1932, and today we have relationships with more than 50 life insurance lenders. These lasting relationships allow us access to billions of dollars to fund all commercial property types. We also offer in-house loan servicing, and take great pride in the quality and performance of our $1.65 billion loan servicing portfolio.
In addition to representing life insurance company lenders, NBS Financial Services has represented banks, conduits (CMBS), pension funds and private equity. With access to various lending sources, NBS Financial has the ability to finance the entire capital stack.
Though today’s interest rates are historically low, the commercial mortgage market can change rapidly. Call your NBS Financial Finance Offi cer today to find out more about financing your commercial property.
