Deal Highlight
3 Years - $54M - 100% of Acquisition Financing
TimeSquare, Renton, WA
 

324,287-square-foot institutional-quality office campus

Through one of its life company correspondents, Antonio Hachem, vice president, PSRS, provided 100% structured acquisition financing, on a non-recourse five-year term. This $54.5 million loan has three years I/O and 25-year amortization thereafter. This asset provided the life company an opportunity for yield in the Seattle market, where the lender had little to no exposure.

This is a borrower’s dream come true, where they gain from a high leverage loan at 100% of purchase price (90% LTC) with Life Company pricing and certainty of execution.

What Stands Out:

  • Bought at a 9 cap providing tremendous cash flow
  • Core plus deal with immediate value add returns
  • Cash-on-cash returns average 20% plus
  • Rent increases will take the net income over the next four years to an 11 cap, based solely on the existing credit tenants, thus providing a 25% cash-on-cash deal at that point

Upside Strategy:
Sponsor gains additional upside in the excess land. City planners see potential for a 300,000 to 400,000 square-foot mid-rise to be added at the rear of the building.

“With limited supply in Renton, especially for big block space, the owner can entitle the excess land and either sell it or enter into a build- to-suit for a large single tenant. Either way, they could add $10 to $15 million in additional value,” noted Hachem.

Final Word:
All in all, the returns are high and reliable. The tenants are happy with buildings and have expressed long-term plans for this project. Overall, the sponsor and lender believe it's a great hedge even if the market cools down, given the rents are already so low relative to the Seattle market as a whole.

 
See what kind of structure we can build for you!
PSRS Los Angeles
psrs-la@psrs.com
310-471-1911
  CONTACT PSRS  
TimeSquare Renton
Life Insurance Company
324,287 SF
$54M
Renton, WA
  VIEW TRANSACTION  
Why Work with PSRS
 
  • Non-recourse financing
  • Lock rate at application
  • Terms - Floating Rate to 40 Year Fixed
  • Minimal to no reserve structure
  • Current servicing portfolio of $5.5 Billion – Fast servicing decisions
  • Nationwide coverage in the US on all commercial and multi-family real estate
  • Loan sizes from $1 Million to $100 Million+
PSRS represents 22 life insurance companies, and also works with banks, private capital and other credit facilities seeking investment in real estate secured assets.
We maintain a loan servicing portfolio that includes these life company mortgages, and we are available to provide borrowers with local customer service over the life of the loan.
CONTACT
PSRS Los Angeles
psrs-la@psrs.com
310-471-1911
ABOUT PSRS
Founded in 1972, PSRS is one of the largest privately-held commercial mortgage banking firms in the Western United States.
 
Copyright © 2017 PSRS. All rights reserved.