2012 Umpqua Bank Challenge

NBS Financial sponsored the 2012 Umpqua Bank Challenge, held in Aloha (just outside of Portland) Aug. 26-28. Pictured above is President Ken Griggs (second from left), Finance Officer Paddy Ryan (fourth from left) and Associate Finance Officer Andrew Patterson (far right) with one of our signs.

Second Quarter Reports Show Some Positive Signs for Portland Commercial Real Estate Market

NBS Financial has released its Second Quarter 2012 quarterly reports for office, industrial, retail and multifamily commercial real estate, as well as its economic report.

 

Office vacancy rose slightly during Second Quarter, to 13.71 percent in central city, 22.76 percent in the suburbs, and 16.62 percent in Vancouver.

Retail vacancy rose slightly to 6.91 percent, with a significant increase in vacancy in Central City as the Yamhill Marketplace former Bally Total Fitness became available. Grocery stores, including Wal-Mart, continue to expand throughout the metro area.

Industrial vacancy fell slightly to 14.19 percent during Second Quarter, with a significant drop in vacancy in Vancouver due to Canfield Transfer’s 62,798 sf lease at Columbia Business Center, and some other sizable leases.

The multifamily market continued to improve, with vacancy down to 2.6 percent during Second Quarter and rental rates rising. Though the single-family housing market is finally seeing some sustained recovery, the apartment market will remain healthy, with strong demand for the roughly 6,000 units under construction in the metro area.

Full reports are available at http://www.nbsfinancial.com/research.html.

Henderson Arranges $26.3M for Two Washington State Office Properties

NBS Financial Services Finance Officer Jeff Henderson arranged $16 million for the PPE Building, a 93,509 sf office building in Tumwater, WA, and in a separate transaction arranged a $10.3 million loan for the I-5 Technology Center, a 98,856 sf office building in Federal Way.

“Most of the lenders we represent are looking to increase their investment in the Northwest," Henderson said. "Because of this increase in competition, they are taking the extra time to understand the nuances of certain opportunities in order to structure a deal and win the business.”

Deal Spotlight: NBS Financial Services Secures $14M for Spokane Apartments

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.

Deal Spotlight: Harding Arranges $4.7M in Refinancing for Wilsonville Industrial Property

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.

February Market Watch: Fed Keeping Rates Near Zero Until 2014

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.