The lending volume for commercial deals in major markets of the Pacific Northwest is going to see "a significant increase" in the near- to mid-term, Buchanan Street Partners VP Mark Reese tells us. He gave us two major reasons.
1) The Fundamentals Are Right
Mark (snapped with Buchanan colleagues during a recent company hike in Palm Springs, CA) tells us the strong economy of the Pacific Northwest is causing tenants to expand and look for new space to attract and retain talent—not only in Seattle but also Portland and other regional markets. Also, tenants are flocking from their existing traditional offices to creative spaces, seeking a positive influence on their corporate culture. More flocking means more lending.
2) Changes in the Banking Industry
Mark adds that non-bank lenders (such as Buchanan) expect to see an increase in their volume as traditional bank lenders become more conservative due to stricter bank regulations. "Bank lenders today are focused on stabilized properties with strong in-place cash flow," he says. "This leaves a void for borrowers seeking to finance value-add acquisitions." Recently Buchanan closed a bridge loan for the acquisition of the 68k SF 2815 South West Barbur Blvd in Portland; the borrower, Run Our Dream, will transform it into creative space for the athletic apparel brand Under Armour.
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