Wednesday, March 23, 2016

George Smith Partners Secures $19.9 million in Bridge/Rehab Financing to Fund Creative Office Build-to-Suit in Portland, OR

Malcolm Davies
PORTLAND, OR (March 23, 2016) – Commercial real estate investment banking firm George Smith Partners has successfully secured $19.9 million in bridge/rehab financing for a creative office build-to-suit in downtown Portland that will serve as new offices for global sports apparel brand Under Armour. 

The financing was arranged by George Smith Partners’ Principal Malcolm Davies, along with Kyle Henrickson, a Senior Vice President and Teddy Stutz, a Vice President with the firm.

“This is a high-profile project that will support the global expansion of an innovative and respected retail giant,” says Davies.  “Under Armour signed a 15-year lease for the building on the condition that the project is reconfigured into a creative office campus, which will be the first of its kind in the Portland market.

“The loan we arranged will help our client, the building owner, to begin construction and complete the project within the timeframe specified in the executed lease.”

The planned construction will transform the existing 68,698 square-foot special purpose single-tenant building, which was the former home of the local YMCA, into a 108,698 square-foot campus environment for Under Armour.

Kyle Henrickson
“Based on the unique and customized plan for this project, finding comparable properties for lenders’ consideration was especially difficult,” says Davies.  “In addition, the scope of work required for the planned conversion of the asset introduced added risk to the deal.”

George Smith Partners drew upon Under Armour’s status as a high-quality credit tenant with a 15-year in-place lease, and demonstrated the various options the client has for take-out financing upon the tenant taking occupancy.  

Further, Davies notes that his team focused on the construction-ready status of the project to demonstrate its strength.

“The building owner had already presented a permit-ready plan to the City for review and approval, which gave the lender added confidence in the execution and timeframe for the project,” explains Davies.  “Ultimately, we were able to identify a capital provider that recognized the value in the project, and the opportunity in this loan.”

For a complete copy of the company’s news release, please contact:

Jenn Quader / Courtney Williams
Brower, Miller & Cole
(949) 955-7940

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