SEATTLE—The Seattle Design Center, in the Georgetown neighborhood recently changed hands with the help of $40 million in financing from NGKF Capital Markets.
NGKF served as the exclusive advisor to a Los Angeles-based sponsor that recently closed on the financing. Senior managing director Jordan Roeschlaub and managing director Daniel Fromm, who are based in NGKF's New York City headquarters office, led the NGKF team that arranged and structured a floating-rate loan, with a 3-year initial term and 2 one-year extension options. A debt fund provided the loan, the proceeds of which the borrower will use for the acquisition and repositioning of Seattle Design Center (SDC).
Opening its doors in 1973, the SDC serves as the Pacific Northwest and surrounding region's premier destination for high-end home furnishings and design services. SDC, totaling 410,000 square feet, comprises two buildings connected by a skybridge walkway, with 400 parking spaces.
"The seller, an institutional owner focused primarily on class A office buildings, was liquidating a fund," said Roeschlaub. "The sponsor, an expert in specialty use buildings, recognized the opportunity to create a multitude of uses, including tech and creative office. Since the design industry was hit with the downturn of the economy—resulting in approximately 50% vacancy—a recent upturn in the building industry has helped to increase the demand for design, furnishing and related creative needs."
Fromm added, "Furthermore, the sponsor's comprehensive plan to upgrade the property will appeal to Seattle's burgeoning creative office sector, and was viewed favorably by the lender."
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets.
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