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Selig Pays off Construction Loan for 5th & Jackson

SEATTLE-Martin Selig Real Estate takes out the construction loan for its 145,000-sf 5th & Jackson Building with $32.5-million in financing from CMAC Commercial Mortgage Corp.

By Brian K. Miller | Updated on October 07, 2004

SEATTLE-Martin Selig Real Estate recently paid off its construction loan for the two-year-old 5th & Jackson Building with $32.5 million in financing from GMAC Commercial Mortgage Corp. The financing included a senior piece and a mezzanine piece. Both loans are 10-year loans with 30-year amortizations, according to GMACCM SVP Joe Kimm, which arranged the transaction. Kimm did not get specific about the interest rates in the deal, but generally speaking first mortgage loans such as this likely would be in the 6%-to-7% range while the interest rate on the mezzanine piece likely would be in the high single digits to low teens.The 5th and Jackson Building, located at 418 S. Jackson St., is a class A office building with 10 floors of office over two levels of underground parking. It was completed in mid-2002. The property has a rentable area of 145,129 sf and is 95% leased, according to GMACCM. The largest tenant in the building is Gray Cary Ware & Freidenrich LLP, a Silicon Valley-based law firm that signed a 10-year, $20-million lease in October 2000 for the building’s top three floors. Neither the law firm nor Martin Selig could be reached for comment Thursday on the status of a lawsuit between the two entities stemming from the law firm attempting to cancel its lease.Earlier this year, Selig refinanced the Fourth & Blanchard Building, a 25-story CBD office building with about 400,000 sf of rentable space. Selig Real Estate Holdings Five LLC used a 10-year, $67-million fixed-rate loan from JP Morgan to pay off a two-year-old, $56.6-million adjustable rate loan from Bear Stearns. The interest rate was locked in in April, when the 10-year Treasury was somewhere between 4.3% and 4.7%. The typical spread for a CBD office financing is 110 to 130 basis points, depending on leverage.

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