- Vancouver, WA
- 73-unit mixed use apartment building
- 8,000 retail // 48,801 total SF
Daniel Natsch and Matt Illias were retained by Hurley Development, a Vancouver, Washington based developer, to seek financing for Navalia, a mixed-use project including a 73-unit apartment building in the Uptown neighborhood of Vancouver, Washington.
Hurley Development is an experienced developer with a track record of developing multifamily, office, and retail assets in Vancouver, Washington. At the time the developer retained Ethos, they owned and operated over $170 million of real estate in Vancouver with several large developments in process.
Because of the combination of the pandemic and news headlines about the Portland Metropolitan area, construction lenders’ perception of the market had deteriorated. Ethos was retained to identify a lender that could meet the developer’s 80% leverage request in this challenging environment.
Ethos’ capital markets team had to highlight for lenders the significant increase in demand for multifamily mixed-use space in Vancouver, a growing city north of Portland. Daniel and Matt had to package the developer’s track record with a clear story about the market specific to Vancouver. In soliciting debt and equity financing from various sources, they keyed in on an important metric. In the Vancouver submarket, despite a 30% increase in multifamily supply over the past decade, vacancy remained at an all-time low of 3.3% while rent growth exceeded 9% in the prior 12-month period.
Ethos’ understanding about the real conditions on the ground allowed them to successfully secure a 36-month, $16,850,000 interest-only construction loan with an institutional debt fund, including an extension option and economic incentives for the borrower upon certificate of occupancy. This represented 80% of the project’s capital stack. The Ethos team helped close the loan in 51 days, which allowed the developer to meet their desired timeline for starting construction.
“Danny and Matt at Ethos are great partners for us. They can quickly digest and understand the complexities of sourcing the right lending partners for each project and are valuable to help lay out the strategy and structure it takes to get the deal to the closing table. Our relationship with the Ethos team has been important to the success of this and a number of other projects.”—
- Greg McGreevey, Executive Vice President
- Hurley Development