Seattle, Washington (November 12, 2018) – Norris, Beggs & Simpson Financial Services Principal, Mike Wood, and Associate Finance Officer, Colin Ceithaml, have secured $19,500,000 in financing for UGJ63 in Everett, Washington.
NBS Financial represented the borrower, Underwood Gartland Johnson 63. Funding was provided by State Farm Life Insurance Company, a Life Company correspondent of NBS Financial. The non-recourse, fixed-rate loan financing was structured with a 7-year term and a 30-year amortization.
“The Borrower was looking to mitigate exposure to interest rate risk and lock a rate prior to building completion, tenant move-in and rent commencement. State Farm was able to provide a long term, non-recourse, fixed-rate loan at a very competitive spread that allowed the Borrower to lock in an interest rate in the low 4% range in early February for an October funding,” explained Mike Wood. “This decision proved incredibly timely, given the approximately 60 basis point rise in Treasuries between 1st quarter 2018 to 3rd quarter 2018. This was the 5th loan between entities related to the Borrower and State Farm.”
UGJ63 is a 122,286 square foot build-to-suit distribution building for FedEx Express located on 10.47 acres in Everett, Washington, north of Seattle. The facility will serve as a regional sort center for FedEx Express as they relocate from a smaller facility in Bothell, Washington. There will also be a FedEx shipping center at the south end of the building open to the general public.