iBorrow Blog

iBorrow Provides $4 Million Loan to Bellingham, WA Office Building

iBorrow has provided a $4 million bridge loan to the Granary Building, a 56,529 square foot historic waterfront office building in Bellingham, Washington. Located at 1208 Central Ave, the building includes a 13,000 square foot basement and a 2,800 square foot roof deck, and is part of a 230-acre business park re-development that includes a planned 1.1 million square feet of office space, 2.2 million square feet of industrial space, 450 apartments, a 146-room hotel, 65,000 square feet of retail locations, and a gym and leisure center.

iBorrow CEO Brian Good said,The Granary Building is a one-of-a-kind property with historic value. The borrower is a successful developer with a wealth of experience developing business parks, which made this a very attractive loan for us. We believe the building once completed is well-positioned to lease up quickly and will kick-start the entire development.”

 

Bellingham is a coastal city in Washington State near the Canadian border; it is currently undergoing a large-scale waterfront redevelopment, which is fully backed by both the Port of Seattle and the City of Bellingham. The borrower, Harcourt Developments, is a development company whose prior experience developing large business parks includes the noted Titanic Quarter in Belfast, Northern Ireland. The company will use the loan to recoup equity from pre-paid construction costs, as well as to finish the interior build-out of the Granary Building, a project that will be completed in a year.

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iBorrow Bolsters Accounting Department

iBorrow, is pleased to announce the promotion of Kehvon Thomas to Controller, as well as the additions of Hector Portillo and Katie Spendal as Assistant Controllers.

Thomas, who has worked at iBorrow for one year, was hired as an assistant controller. Portillo has several years’ experience as a fixed assets accountant, and is well-versed in performing account reconciliations, determining the treatment of fixed assets and managing construction-in-process assets.  Spendal has several years’ experience in both tax accounting and as a staff accountant for multiple companies.

In his new role, Portillo will report to Thomas and will be responsible for implementing and managing iBorrow’s accounting processes and policies, as well as overseeing iBorrow's financial reporting and record keeping. Spendal will also report to Thomas and will be responsible for processing wire transfers and transactions, as well as managing invoicing and account reconciliations.

“We are pleased to recognize Kehvon's contributions to iBorrow and to expand the capacity of our accounting department,” said iBorrow CEO  Brian Good. “We have been searching for people with Hector and Katie’s experience and skill sets to assist with managing the increased demands of our growing business.” 

Prior to joining iBorrow, Portillo served as a fixed assets staff accountant at Ticketmaster, where he determined the treatment of fixed assets and performed general ledger account reconciliations. He also previously worked at Curacao in the accounts receivable department, processing financial transactions. Portillo is a graduate of California State University – Los Angeles.

Spendal served as an accountant for Picrow Inc., where she reconciled multiple bank accounts for various television shows, as well as processed transactions and examined financial statements. She is a graduate of the University of Oregon’s Charles H. Lundquist College of Business.

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iBorrow Provides $6.85 Million Loan to Norcross, GA Shopping Center

iBorrow has provided a $6.85 million 1st trust deed loan to Peachtree Corners Shopping Center, a 108,000 square foot shopping center in Norcross, GA. The shopping center has a diverse and long-standing group of tenants including Popeye’s, Waffle House, Family Dollar and other local retailers. The center is 90.5% occupied, and has maintained consistently high occupancy levels since it was built in 1985. The address is 7040-7050 Jimmy Carter Blvd.

 

“Despite the attractiveness of this loan and collateral, we were challenged to create a loan with a flexible structure and on a short time frame,” said iBorrow CEO Brian Good.  “We are pleased we were able to address the borrower’s needs and at the same time, build in important structural protections for our loan capital.  Needless to say, the retail environment is challenging and loans to retail buildings must be carefully considered.  In this case, our comfort is based on the growth and demand drivers of the community and the structural protections we built into our loan.”

Norcross is a busy and growing commercial hub 20 miles northeast of downtown Atlanta that is easily accessible from multiple freeways. Peachtree Corners is a commercial district with an economically diverse and growing population, due to corporations headquartered in Atlanta that drive spill-over population growth to Norcross. The Norcross Shopping Center is well located, and benefits from significant frontage on Jimmy Carter Boulevard, a major thoroughfare

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iBorrow Provides $3.875 Million Loan to Refinance Shilo Tacoma Hotel

As published by Business Examiner, iBorrow has provided a $3.875 million loan to refinance Shilo Tacoma, a 76,230 square foot full-service hotel located in Tacoma, Washington. The hotel includes 132 rooms, flexible meeting space and a breakfast area. The proceeds of the loan will refinance an existing CMBS loan, which was successfully re-negotiated by the borrower.

“The borrower’s long and distinguished track record of operating hotels made our decision to refinance the property an easy one,” said iBorrow CEO Brian Good. “Though we had very little lead time before the transaction needed to be closed, iBorrow was able to offer a quick solution to the borrower's needs because the loan, as structured, provided a compelling investment opportunity."

Shilo Inns is one of the largest privately owned and successfully operated hospitality companies in the country. Hospitality properties like Shilo Inns are much needed in the Tacoma market, where the population has grown significantly over the past five years, resulting in an increased demand for hotel rooms, with the hotel remaining close to fully occupied during the May – October tourist season. Further, the property’s location is adjacent to numerous attractions, including the Tacoma Dome, the combined McChord Air Force Base and Ft. Lewis Army Base, and the Great American Casino.

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iBorrow Provides Loan for Development of Two Seattle Luxury Boutique Hotels

As published by Rentv.com, iBorrow provided a $5.1 million loan to convert a 25,430 square foot historic Seattle building into a luxury boutique hotel, as well as a $4.6 million loan to develop a 24,000 square foot office building space into a luxury boutique hotel. Both properties are located in the Pioneer Neighborhood of downtown Seattle, located just minutes away from Century Link Stadium, the Seattle Waterfront and Pike Place Market.

When fully renovated, the first property, located at the intersection of 1st Avenue South and South Washington Street, will be an amenity-rich 25-room luxury hotel featuring a restaurant, coffee shop, large music venue and full bar. The second property, located at the intersection of Second Avenue and Yesler Way, will include 38 rooms, a wine bar, restaurant and lounge, two roof decks, an outdoor coffee bar and a basement entertainment venue.

“These properties are still a year from being fully renovated,” said iBorrow CEO Brian Good. “Seattle is one of the strongest real estate markets in the country, and given these buildings’ prime location, we believe that once the renovations are complete, the hotel revenue will be significant.”

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Stockton Holiday Inn is Refinanced

As published by Central Valley Business Times, iBorrow provided a 73-room Holiday Inn Express and Suites with a $7 million loan. The borrower plans to use the money to pay off existing loans and upgrade the property.

Operating results at the Holiday Inn Express have improved over the past year, likely as a result of increased demand from the two large-scale projects that were recently completed nearby: a 1.4 million-square-foot state prison healthcare facility housing 3,000 inmates and employing 2,500 people, and a 431,000-square-foot Tesla manufacturing facility.  

“This is a high-quality loan, as the property generates significant cash flow. Despite this, the loan was challenging because the borrower required a quick close and could not wait to obtain traditional financing,” says iBorrow CEO Brian Good.

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The Promised Land: What’s Next for Portland Real Estate?

A booming city filled with millennials and jobs, Portland’s market has drastically changed over the past several years – especially in the real estate arena. The evolving market has brought more than 41,000 new metro-area residents who are in search of both residential and commercial properties.

Portland Monthly turned to iBorrow CEO Brian Good for further insight on Portland’s emerging real estate market in the article “Rising Prices. Fierce Bidding Wars. What’s Next for Portland Real Estate?”

With some looming global uncertainly, Portland residents worry about growth and affordability; however, the city’s real estate hasn’t showed any signs of slowing. “Portland will get bigger and better,” said Good. “Any problems will be high-end problems.” As the city continues to grow, its existing inventory is rapidly depleting, but with developers flocking to the area, new buildings, retail spaces and homes are contributing to its vast economic growth.

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iBorrow Provides $7 Million Loan to Refinance Stockton Holiday Inn

-- Economic developments drive demand for hotel accommodations --

LOS ANGELES— iBorrow, a direct lender of private money loans for commercial real estate, has provided a $7 million loan to refinance a 73-room Holiday Inn Express and Suites located in Stockton, California. The borrower plans to utilize the funds to pay off existing loans, and upgrade the property.

Operating results at the Holiday Inn Express have improved over the past year, likely as a result of increased demand resulting from two large-scale projects that were recently completed nearby: a 1.4 million-square-foot state prison healthcare facility housing 3,000 inmates and employing 2,500 people, and a 431,000-square-foot Tesla manufacturing facility. The hotel also benefits from consistent business from the University of the Pacific in Stockton, which is close to the hotel.

“This is a high quality loan, as the property generates significant cash flow. Despite this, the loan was challenging because the borrower required a quick close and could not wait to obtain traditional financing,” said iBorrow CEO Brian Good. “There aren’t many comparable properties in the area so the valuation was a challenge. We had to step back and study the key economic drivers in the market which, when studied, showed an increased demand for hotel rooms. Of equal importance was the fact the borrower has a track record of strong hotel operating performance, which made us comfortable to provide financing for this project and borrower.”

The loan was originated by Will McCabe, Vice President of Loan Originations at iBorrow.

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An Alternative to Traditional Lending: Will McCabe Authors Commercial Investment Real Estate Article

After the 2008 financial crisis, traditional lending sources were unable to provide the same loans they had previously made, and as a result, the floodgates opened for nontraditional lending sources that could fill the void.

In his Commercial Investment Real Estate article “Shadow Banking,” Will McCabe, Vice President of Loan Originations at iBorrow, addresses the shadow banking space and the challenges facing the industry.  

 

Unsecured debt is exemplified by the way credit cards work – a borrower can effectively delay repayment obligations for years until the lender files a notice of default, and even then, the disputes are taken to courts where a judge could potentially decide that the lender is not owed the principal balance in full. “While a personal guarantee from the borrower provides some safety for a lender, there is no doubt that it is easier to underwrite the value of real assets, such as real estate, equipment, or inventory, as opposed to gamble on a borrower’s net worth,” writes McCabe. 

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Jeremy Michaelson Joins iBorrow as Loan Originator

LOS ANGELES — iBorrow, a private direct lender for commercial real estate, is pleased to announce that Jeremy Michaelson has joined the firm as Vice President of Originations. Michaelson has several years of experience in the real estate industry, from underwriting and closing multi-million-dollar transactions to project development and property management.

In his new role, Michaelson will work with the firm’s borrowers to develop and structure loans based on borrowers needs and objectives.

“Our firm is growing and in order to fulfill the demand of our borrowers and our investors, we need to substantially increase our loan origination volume.  Jeremy is an experienced loan originator with a proven track record who has closed numerous transactions – from small balance residential bridge loans to larger commercial transactions of apartment buildings and marketplaces. We are excited to have Jeremy join our growing team,” said iBorrow CEO Brian Good.”

Prior to joining iBorrow, Michaelson served as the Director of Loan Origination at Post Investment Group | Park West Financial, where he originated, underwrote and closed more than $10M in residential bridge loans. He also previously worked at George Smith Partners as Assistant Vice President, where he closed more than $100M in real estate transactions. Michaelson is a graduate of Northeastern University, D’Amore-McKim School of Business.

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