SEATTLE-NBS Financial Services finance officer Jeff Henderson has originated $20.2 million in permanent financing for Pacific Plaza, a LEED-Platinum office and retail project in Tacoma, WA. The transaction provided its share of challenges, according to Henderson.

The property is in a secondary market, and is a condominium with partial owner/user space, with a master lease on the ground floor consisting of a grocery store that has yet to take occupancy in an unproven market. “This deal was among the most challenging CMBS single-asset transactions to date in the new lending world,” Henderson says.

Because of the breadth and depth of NBS Financial’s capital resource relationships across the country, Henderson was able to find the right lender for the deal, according to a prepared statement. “We had to show the lender why the increased market vacancy, due to the departure of Russell Investments, should not be a detriment in underwriting this deal,” Henderson says. “At the end of the day, this is an outstanding asset with stable income, and we helped the lender recognize that.” As the capital markets continue to go after the best of asset class, lenders are starting to look in secondary markets for opportunities, according to the statement.

“There is actually a lot of money out there,” Henderson says, “and if we understand every aspect of the deal, how to mitigate risk, and add up all the components of value, we are better suited to help lenders get comfortable with the deal and help the borrower get the most dollars they can.”

Pacific Plaza, originally constructed as a parking garage, was redeveloped for office/retail use in a partnership between the City of Tacoma and Pacific Plaza Development LLC. The renovation was completed in 2009, and sustainable features include a green roof, a rainwater collection system and an efficient heating and cooling system.