Norris, Beggs & Simpson Secures $43M For Apartment Construction
Norris, Beggs & Simpson Financial Services, Portland, Ore., secured $42.9 million in construction and permanent financing two Seattle apartment properties.
NBS Principal Mike Wood and Associate Finance Officer Colin Ceithaml secured $20.9 million for Ivy Apartments in Seattle’s Interbay submarket between the city’s Queen Anne and Magnolia neighborhoods. They represented borrower Interbay Apartments LLC, Seattle, in the deal. State Farm Life Insurance Co., Bloomington, Ill., supplied the 12-year fixed-rate construction/perm loan.
“The borrower was a long-term holder and with the rising treasuries wanted to take future interest rate risk off the table,” Wood said. “State Farm’s construction/perm program allowed the sponsor to lock the rate prior to construction, which would then convert to a non-recourse permanent loan upon completion and stabilization.”
Wood said the borrower fixed a rate in the mid-4 percent range.
When completed, seven-story Ivy Apartments will have 93 units on Seattle’s west side adjacent to the Interbay Athletic Complex and Golf Center. Construction should begin next month.
In August Wood and Ceithaml secured $22 million for Stream Dexios Apartments in Seattle. Borrower Stream Real Estate LLC, Seattle, received a 13-year construction/perm loan from State Farm.
Wood noted this financing represented the fourth loan Stream Real Estate has done with State Farm through NBS, “so there was certainty of execution, which is valuable in the current dynamic lending environment,” he said.
When completed in 2019, Stream Dexios will be an 80-unit mixed-use building in Seattle’s Westlake neighborhood on Lake Union’s western shore. The 80,800-square-foot six-story building will include 3,900 square feet of retail space on the ground floor and a rooftop deck with views of Lake Union, Capitol Hill and the Cascade Mountains.
