Acquisition Financing for 114,000 sq ft Office Building
One of our most recent loan closings was with a first time client that we're excited to work with again in the future. The borrowing group had a 1031 Exchange that dictated the closing timeline which was longer than we typically see for acquisitions. The benefit was that interest rates came down significantly during processing and McBride Capital was able to negotiate a much lower interest rate at commitment than what was noted in the application.
The subject property is 1305 Tacoma, an office building centrally located in Tacoma, WA. The 114,000 sq ft building and attached parking structure span a full super block near the downtown core of Tacoma. This enormous footprint is a rare find and provides future development options for our client.
The acquisition was financed by a CMBS loan arranged by McBride Capital. The 10-year, non-recourse loan boasts a 30-year amortization and full term interest only payments. The debt strategy for the acquisition was tailored to the client's desire to maximize their cash-on-cash return. The largest hurdle to overcome on this transaction was the lack of historical operating statements. This was a sale-lease back where the previous owner could not effectively split out the building's operations from their company operations. Strong comps and our client's experience in the market allowed us to base expenses solely on our underwriting and support from the appraisal.
The loan was originated by Danny Natsch. Please feel free to contact our team with any questions regarding the CMBS platform or specific properties you're looking to finance.