NBS Financial Arranges $41.7M for First Spec Office Building in PDX Post-Recession

NBS Financial Services President Ken Griggs and Finance Officer Paddy Ryan have secured $41.74 million in permanent construction financing for Pearl West, Portland’s first speculative office building post-recession. NBS Financial represented the lender, Washington Capital Advisors, a pension fund advisor for labor unions. Walter C. Bowen of BPM Real Estate Group is the developer, and BDC/NW Irving, LLC is the borrower.

Washington Capital Advisors’ involvement was imperative for the nine-story, 154,011 sf office building in becoming a reality.

Pearl West

“Funding was provided through various union labor pension funds represented by Washington Capital Advisors,” Ken Griggs remarked. “Washington Capital Advisors recognized Pearl West as a secure investment that will protect and grow union pensions. Another positive for this project is the creation of local union jobs for the city.”

With fundamentals of a tightened office market underscoring a strong need for immediate new development, the proposal for Pearl West was announced in January 2014. Though Pearl West is the first new office project to break ground post-recession, competition is certain. Over the past 12 months, Portland’s healthy economy has attracted many industries, especially creative businesses which are projected to bulk up the majority of the local job market over the next decade. Accommodating this surge in growth was limited by little to no new construction in the Central Business District (CBD). Thus traditional office buildings have been forced to incentivize their space to remain competitive and deter tenants’ flight to the suburbs. Central city office vacancy has only tightened with NAI Norris, Beggs & Simpson reporting a robust 8.15% for the Pearl District during Second Quarter.

The Class A office building, featuring ground floor retail and cutting-edge amenities, is slated to complete by early 2016. The half-block building corners Irving Street, which is reserved for pedestrian-only traffic and serves as an arterial vein into the heart of the Pearl District and Downtown Portland. Pearl West has already secured two lead tenants and its lease appeal is gaining momentum well before its ground breaking ceremony on July 18.

Fourth & Pike Building Receives $29.5M

NBS Financial Services Associate Vice President Jeff Henderson and Associate Finance Officer Zack Goodwin have secured $29.5 million in permanent financing for the Fourth & Pike Building, a 132,326 gross sf office building located in the heart of Seattle’s central business district. NBS Financial represented both the lender, Redwood Commercial Mortgage Corporation, as well as the borrower, Mayfield Management Company.

    Jeff Henderson     Zack Goodwin    

The Fourth & Pike building was purchased in 2008, and after undergoing major renovations, is now 95% occupied. 

“Mayfield Management Company’s high quality repositioning efforts and prime location garnered considerable interest,” Henderson said, “and Redwood Commercial Mortgage Corporation proved to be the best fit for the borrower’s goal."

Fourth & Pike Building

NBS Financial Promotes in PDX and Seattle

NBS Financial Services is pleased to announce the promotions of Matt Illias and Austin Johnson with their advanced titles as Associate Finance Officers.

With a strong background in banking, Matt joined NBS Financial Services in 2013. During his tenure, Matt’s exceptional skills in research and analytics have been integral to the team’s achievements.

Austin was a welcome addition to NBS Financial Services in 2013 as well, with extensive experience in commercial real estate. Austin’s successful contributions have been a reflection of his remarkable attention to detail and resolve to excellence.

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

NBS Financial Secures $21.25M for a Series of Residential Properties in Salem

Vista Pointe Luxury Apartments

NBS Financial Services Principal and Director of Portland Production Blake Hering,Jr. and Financial Analyst Matt Illias have arranged $4.1 million in refinancing for Vista Pointe Luxury Apartments, marking the third transaction in a series of residential properties for a local borrower in Salem, OR. NBS Financial will also service the loan for the lender, life insurance company Genworth Financial.

The string of transactions started in 2013 with NBS Financial securing $14 million for Gateway Village Apartments, which was followed up in 2014 by $3.15 million for newly constructed Reed Townhomes. The latest $4.1 million refinance for Vista Pointe Luxury Apartments completed the set of deals that total $21.25 million and over 400-units of residential properties within a one-mile radius.

“The projects all vary in size and amenities for a range of renters and price points. The borrower was able to take advantage of extremely attractive interest rates with all three refinances,” Hering said. “This last loan closed in just 37 days, which was quite remarkable in today’s often ‘process-heavy’ environment.”

Terms spanned from modest to full leverage for the three projects, but all the loans consisted of low fixed rates with 30-year amortization schedules. 

NBS Financial Arranges $8.48M in Financing for Baxter Auto Parts

Baxter Auto Parts

NBS Financial Services President Ken Griggs and Finance Officer Paddy Ryan have arranged $8.48 million in permanent financing for a portfolio of seven retail properties totaling 87,819 sf owned by Baxter Auto Parts.

Rooted in the Northwest since 1936, family owned business Baxter Auto Parts sought local support in funding their portfolio. Financing was placed through a Portland-based credit union and a cash-out loan. It was a simple and low-cost process, and as a repeat borrower from NBS Financial, Baxter Auto Parts had resolute confidence in their ability. Terms included an approximate 70% loan-to-value on a five-year term with a 25-year amortization schedule.

“This deal truly represented the strong capabilities of our local partners,” Griggs said. “The loan provided flexibility to Baxter Auto Parts with working capital and it increased their business banking capacity because their real estate was no longer leveraged by their bank.”

With 35 stores spanning the Pacific Northwest and Northern California, Baxter Auto Parts is a prevalent name in the auto parts industry.