SEATTLE – January 22, 2015 – HomeStreet Bank Commercial Real Estate announced today that in 2014 it closed $500 million in commercial real estate loans in the Pacific Northwest, California and Hawaii. Over one half of the total closed was for construction and bridge financing, a third for multifamily permanent loans through the Fannie Mae DUS® program, and the remainder of the volume for commercial permanent loans.
“The past year was characterized by increased activity from our developer, investor, and mortgage broker clients,” said HomeStreet Bank Commercial Lending Director Randy Daniels. “HomeStreet is uniquely positioned with its broad range of loan products and loan sizes to serve the many financing needs of our robust commercial real estate community. We continue to be bullish on new apartment construction and renovation, new supply notwithstanding, and see new demand for other property types as job growth continues, especially in our core markets of Seattle and Portland. Looking ahead, we are optimistic about financing acquisitions and refinances with historically low interest rates.”
Notable projects in 2014 included:
- South Parc Apartments and West Parc Apartments in Bethany Village (Portland, Ore.) – $19.51 million permanent Fannie Mae DUS loan to refinance South Parc Apartments and $25.4 million construction for West Parc Apartments.
- Forest Creek Apartments (Kent, Wash.) – $9.68 million bridge loan to acquire and rehabilitate a 92-unit garden-style middle market apartment complex built in 1988.
- Fifth Street Market (Eugene, Ore.) – $13.4 million to refinance a retail project that serves as the cornerstone of the 5th Avenue Historic Market District. The structure dates from 1929 and was converted to an upscale retail center in 2004.
- Argens Apartments (Seattle) – $9.7 million for construction of a 45-unit multifamily project, with three live-work units on the lower levels and 42 units ranging in size from 411 to 987 square feet on the 6,100 square foot site of the former Argens Safe and Lock Co. in the historic Pioneer Square neighborhood. The neighborhood is currently undergoing extensive revitalization.
- Cannery Row (Sherwood, Ore.) – $12.662 million permanent Fannie Mae DUS loan to refinance the construction loan of a new apartment complex.
- 47+7 (Seattle) – $3.856 million for construction of 24 garden-style units in the densely populated University District. The developer is utilizing an innovative and cost-effective modular approach with off-site construction of walls, floors and ceilings that are subsequently installed on-site within a steel exoskeleton.
- 2200 Western (Seattle) – $15.675 million for construction and improvements to an historic four-story building constructed in 1909 as “Union Stables,” originally a commercial horse stable facility. The building is on the city’s historic registry. Upon completion, the project will be a five-story mixed-use office and retail building, including a new penthouse, and will retain its historic façade.
Other projects of note:
- River Ridge Apartments (Tualatin, Ore.) – $22.851 million for construction of a new multifamily project.
- 1442 Kewalo Apartments (Honolulu) – $4.29 million bridge loan for rehabilitation of an apartment project.
- Bungalows at Mathilda Avenue (Sunnyvale, Calif.) – $12.0 million bridge loan for the acquisition and rehabilitation of an apartment project in Silicon Valley.
- Market Square (Seattle) – $7.65 million for the acquisition of an office property.
- Salmon Creek, Phases I and II (Sumner, Wash.) – $9.78 million for the construction of an industrial property.
- Town Center East III (Olympia, Wash.) – $26.7 million to refinance an office project.
- BlueKoi Apartments (Salt Lake City, Utah) – $3.825 million Fannie Mae DUS permanent loan.
- The Residences at Northwood (Anchorage, Alaska) – $3.862 million Fannie Mae DUS loan.
- Bend at Brentwood Apartments (Lubbock, Texas) – $4.5 million Fannie Mae DUS loan.
“The success of the past year was the result of a strong team of originators in the Pacific Northwest and California, a highly experienced group of underwriters and closers, and a diverse set of loan products that meet a wide range of project stages and needs,” said Daniels. “We are fortunate at HomeStreet to have lending capacity akin to the larger banks, coupled with a more flexible and hands-on community banking approach, which together help us serve our customers well.”
HomeStreet Bank is one of only 24 Fannie Mae DUS-approved lenders in the country and the only DUS lender based in the Pacific Northwest. For more information on HomeStreet Bank Commercial Real Estate, visit www.homestreet.com/cre.
DUS® is a registered trademark of Fannie Mae.
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About HomeStreet, Inc.
HomeStreet, Inc. (NASDAQ:HMST) is a diversified financial services company headquartered in Seattle, Washington and is the holding company for HomeStreet Bank, a state-chartered, FDIC-insured savings bank. HomeStreet offers consumer, commercial, and private banking services and investment and insurance products in Washington, Oregon and Hawaii, and originates residential and commercial mortgages and construction loans for borrowers located in the Western United States and Hawaii. The bank has consistently received an “outstanding” rating under the federal Community Reinvestment Act (CRA). Additional information on HomeStreet Bank can be found at www.homestreet.com.