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SEATTLE-Nitze-Stagen has increased its mortgage on Starbucks Center to $66 million. The lender is and was Teachers Annuity and Insurance Association, a major lender to the commercial real estate industry. Prior to the refinance, which closed last week, Nitze-Stagen was four years into a 10-year, $50-million loan from Teachers.

At nearly 2 million sf, Starbucks center is one of the largest multi-tenant buildings west of the Mississippi River. Blending retail, office, warehousing, manufacturing and distribution functions, it is home to 50 tenants including Starbucks, which keeps its world headquarters in the building.

The interest rate on the 10-year loan is not being released by the parties involved, but generally speaking, long-term fixed rate loans are currently being secured at between 6% and 7%. The loan was sourced by Mike Taylor of Churchill Real Estate Inc. and Hans Siebert of Churchill Mortgage Corp. There was no information immediately available regarding what Nitze-Stagen would do with the extra cash.

The original industrial structure was built in 1912 by Union Pacific railroad to lure Sears to Seattle. Two years later, the catalog company built an 800, 000-sf facility that then was the largest building west of Chicago. In 1925 Sears opened a retail store at the site, and it is currently the oldest continuously operated Sears store in the world. Further additions were made in 1945, 1956, 1965, and 1974 to get it to nearly 2 million sf.

The building suffered significant damage in the Feb. 2001 earthquake, but Nitze-Stagen has since repaired the building, including a new brick façade on the main building. The current vacancy rate at Starbucks Center was not immediately available.

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