NGKF Capital Markets, serving as the exclusive advisor to a Los Angeles-based sponsor, recently closed on $40 million in financing for the Seattle Design Center (SDC) in the Georgetown neighborhood of Seattle.
Senior Managing Director Jordan Roeschlaub and Managing Director Daniel Fromm, who are based in NGKF’s New York City headquarters office, led the NGKF team that arranged and structured a floating-rate loan, with a 3-year initial term and 2 one-year extension options. A debt fund provided the loan, the proceeds of which the borrower will use for the acquisition and repositioning of SDC.
Opening its doors in 1973, the SDC serves as the Pacific Northwest and surrounding region’s premier destination for high-end home furnishings and design services. SDC, totaling 410,000 square feet, comprises two buildings connected by a skybridge walkway, with 400 parking spaces.
“The seller, an institutional owner focused primarily on Class A office buildings, was liquidating a fund,” said Mr. Roeschlaub. “The sponsor, an expert in specialty use buildings, recognized the opportunity to create a multitude of uses, including tech and creative office. Since the design industry was hit with the downturn of the economy-resulting in approximately 50 percent vacancy at the property-a recent upturn in the building industry has helped to increase the demand for design, furnishing and related creative needs.”
Mr. Fromm added, “Furthermore, the sponsor’s comprehensive plan to upgrade the property will appeal to Seattle’s burgeoning creative office sector, and was viewed favorably by the lender.”
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.