NEWPORT BEACH, Calif. and SEATTLE, Wash. – (Nov. 26, 2018) – Buchanan Street Partners, a Newport Beach, California-based real estate investment management firm, has closed on a $16 million non-recourse bridge financing to Net Lease Alliance to resume and complete the construction of a 125,100 square-foot retail center in the suburban Seattle community of Puyallup, Washington.
The project involves the redevelopment of a former Lowe’s store and is 100 percent pre-leased to 24 Hour Fitness and At Home, a publicly traded retail chain specializing in home décor products. Buchanan Street closed the loan in two weeks to enable the timely completion of the project and meet tenant commencement dates by year-end and the first quarter of 2019.
“Lenders are typically reticent to finance a disrupted construction project, though we found the merits of this transaction compelling,” said Joseph Maehler, senior vice president, Buchanan Street Partners. “Buchanan Street’s loan is backed by an experienced, reputable sponsor, a high-quality asset, strong market fundamentals and an attractive, risk-adjusted return.”
Target Rock Partners represented Net Lease Alliance in the transaction.
The property is located at 301 37th Avenue SE in Puyallup, ten miles east of Tacoma and 35 miles south of Seattle. The local market has experienced significant economic and population growth in recent years and is at the intersection of three major highways and a top boarding location for local commuter rail service.
“Net Lease Alliance relied on our extensive construction lending experience to understand the project’s scope and move quickly to craft a financial solution for a complex deal involving a Washington property, an Alabama sponsor, a California lender and a New York broker,” added Maehler.
Buchanan Street provides first mortgage capital and structured financing for commercial and multifamily properties. The company’s debt lending platform provides construction and bridge loans from $3 million to $30 million.