Cobalt Development engaged Ethos Commercial Advisors to obtain construction financing for WB Commerce, a speculative two-building, 160,000 square foot industrial project in Woodburn, Oregon.
Ethos executed a comprehensive capital markets process, generating multiple competitive financing options from debt funds, banks, and credit unions. Following detailed analysis and negotiation, Ethos secured $17,000,000 in non-recourse construction financing from a debt fund, representing 62% of total project cost on a 24-month term.
Given the speculative nature of the development and absence of pre-leasing, lenders were required to underwrite based on pro forma rents and uncertain lease-up timelines. To alleviate these concerns, Ethos presented a data-driven case highlighting strong absorption, sustained tenant demand, and limited new supply in the market. This evidence-based approach substantiated the project’s position and reinforced lender confidence in its long-term success.
Because the project had broken ground prior to sourcing financing, Ethos worked closely with Cobalt, the lender, and title company to structure protections that satisfied lender concerns, including obtaining lien releases, verifying contractor payment status, and securing title insurance coverage, enabling a confident and timely loan closing.
Ethos Services
Associated Team Members
- Matthew Illias
- Senior Managing Director, Partner
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- Daniel Natsch
- Senior Managing Director, Partner
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