Nexus Canyon Park

BOTHELL, WA-Owners of a biotech building here and an apartment complex in Fife, WA have refinanced their properties for a total of nearly $37 million in two deals arranged by Holliday Fenoglio Fowler. In the biotech building refinancing, in the Seattle suburb of Bothell, HFF reports that its San Diego and Portland, OR offices arranged a $21 million refinancing for Nexus Canyon Park, a 152,050-square-foot biotech/laboratory building. In the other refinancing, the Portland office of HFF arranged a $15.6 million loan for Rainier Pointe, a 241-unit apartment complex in Fife.

HFF senior managing director Tim Wright, director Tom Wilson and associate director Zack Holderman secured the loan for Nexus Canyon Park on behalf of Nexus Properties Inc. They arranged the loan with Prime Finance, a commercial real estate finance company with offices in San Francisco, Chicago and New York. The new loan is refinancing maturing debt on the property.

Rainier Pointe

Nexus Canyon Park is fully leased to four tenants: VoiceStream (T-Mobile), Immunex (AMGEN), Epoch Pharmaceuticals and Acucela. The property is located at 21720 23rd Dr., less than one mile from Interstate 405 and about 15 miles northeast of Downtown Seattle. Wright commented, "Nexus Canyon Park enjoys an excellent cost advantage to any new asset required to provide the build-out and mechanical capacity required by today's biotechnology and communication tenants." Founded in 1979, Nexus Properties is a developer of corporate facilities, biotech laboratories, and flex research and development properties throughout California, Washington, North Carolina and other markets.

In the financing for Rainier Pointe, HFF managing director Casey Davidson and director Tom Wilson placed the 35-year, fully-amortizing, 3.79% fixed-rate (excluding mortgage insurance premium) 223(f) FHA loan with AmeriSphere Mortgage Finance LLC. The new permanent financing replaced an existing short-term bridge loan for the borrower, a joint venture of Security Properties and Equity Resource Investments. Davidson noted that the 223f program "offers multi-housing borrowers the highest leverage in the market at attractive long term rates."

Rainier Pointe is at 6643 20th St., with direct frontage on Interstate 5 in Fife, about six miles from Downtown Tacoma and 30 miles from Downtown Seattle. The property, which is 88% occupied, is undergoing renovations to the exterior as well as individual unit renovations. The units range from one to three bedrooms and average 751 square feet.

Commented Wilson, "The borrower, a major institutional owner of multifamily across the nation, repositioned the asset for the long term by taking advantage of this historically low-interest-rate environment. The FHA process is long and arduous versus other traditional financing options; however, for those multifamily borrowers who have patience and are seeking maximum leverage and a long term interest rate solution this is a very compelling loan program."

Security Properties Inc. is a multi-faceted real estate enterprise with ownership responsibilities over a broad geographic portfolio of multifamily real estate properties. Since its inception in 1969, it has sponsored the acquisition and/or development of over 420 properties located throughout the US totaling approximately 60,000 multifamily housing units―at times with associated commercial space―with an aggregate value at cost of approximately $2.9 billion.