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Schnitzer Secures $70M Permanent Financing for Civica Office Commons

BELLEVUE, WA-The Teachers Annuity and Insurance Association provided the funds, which paid off a $64-million construction loan from Wells Fargo. The building is just under 90% leased in a CBD with a 25% vacancy rate.

By Gina Binole | Updated on September 25, 2002

BELLEVUE, WA-Locally based Schnitzer Northwest closed last month on a $70-million permanent financing for its 306,000-sf Civica Office Commons in Downtown Bellevue. The money pays off a $64-million construction loan from Wells Fargo, an anchor tenant in the building.

The funds were provided by Teachers Annuity and Insurance Association, a group life and disability business and a major lender to the commercial real estate industry. 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 George Mitsanas of Churchill Mortgage Corp.

Rents in the building are reported to be 50% above the current market rents in the Bellevue CBD, which currently has vacancy rate of approximately 25%. Even with the current softness in the market there was stiff competition for the loan as the building is nearly 100% occupied with a very strong rent roll. “It was shopped to tons of lenders,” one local loan broker tells GlobeSt.com, adding that a lot of lenders haven’t met their allocations for the year and lenders are competing hard for well-leased, high quality office buildings with credit tenants.

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