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Columbia Pacific Advisors Provides $50M Loan for Purchase of Weyerhaeuser Campus

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Photo © Ezra Stoller | Esto

SEATTLE–Columbia Pacific Advisors provided the $50 million first mortgage for last week’s $70.5 million purchase of the iconic Weyerhaeuser campus in Federal Way, Washington.

The Seattle real estate lender’s loan enabled Industrial Realty Group, LLC (IRG), a nationwide real estate development and investment firm, to buy the 425-acre corporate campus. IRG plans to redevelop and lease or sell parts of the high-profile property primarily for industrial and office use.

In just four years, Columbia Pacific Advisors has become a national leader for bridge lending. Since January of this year alone, the firm has closed more than $90 million in loans.

Columbia Pacific’s real estate lending strategy is U.S.-focused with a portfolio of real estate loans using a wide variety of collateral, including office, senior housing, retail, multi-family, hospitality and mixed-use properties in every region of the country.

The $50 million loan to IRG for the Weyerhaeuser property was completed on a condensed schedule. “Closing loans quickly and efficiently is standard practice for Columbia Pacific,” said Brad Shain, Managing Director of the firm’s real estate lending strategy.

“We are fully capitalized, which allows us to be flexible on the deal structure and timeline,” Shain said. “Columbia Pacific is proud to be part of the sale of the Weyerhaeuser property right in our backyard – land that will provide much-needed office and industrial space strategically located between Seattle and Tacoma.”

Columbia Pacific Advisors manages more than $1.1 billion* across a variety of alternative investment strategies, including real estate lending, private real estate equity, growth capital, private equity and distressed debt.

“Our real estate lending strategy is a significant and growing component of our company,” said Alex Washburn, Managing Partner of Columbia Pacific Advisors. “We see a need in the financial markets for flexible capital that can deliver within demanding timeframes. We were excited when the Weyerhaeuser opportunity presented itself and we are delighted Brad Shain and his team were able to execute swiftly and successfully.”

With deep experience in redeveloping corporate campuses, IRG was eager to buy the Weyerhaeuser property for its architecture, size, and location and was able to do so with the participation of Columbia Pacific Advisors.

“Columbia Pacific’s real estate lending strategy was a critical player in the transaction,” said Tom Messmer, Senior Vice President of IRG. “They worked with us to get us the financing we needed in an expedient and comprehensive manner. We couldn’t have asked for a better lender.”

Mesa West Capital, which is partially owned by Columbia Pacific Advisors, was involved in the origination of the financing and is expected to be involved in the ongoing asset management of the loan.

The city of Federal Way, meanwhile, is eager to move forward and put the high-profile Weyerhaeuser campus to productive use for its residents and the economy.

“The city is thrilled to be working with IRG on job opportunities, new businesses, and sustainable development on the property,” said Jim Ferrell, Mayor of Federal Way. “We are grateful to Columbia Pacific Advisors for providing the loan to make the deal a reality.”

About Columbia Pacific Advisors, LLC
Columbia Pacific Advisors, LLC manages more than $1.1 billion* across a variety of alternative investment strategies, including real estate lending, private real estate equity, growth capital, private equity and distressed debt. The firm utilizes deep fundamental research and seeks to generate consistent and compelling risk-adjusted returns. Columbia Pacific Advisors, LLC is headquartered in Seattle, Washington. For more information, please visit www.columbiapacific.com.

*Regulatory assets under management as of 9/30/15.

About IRG
IRG is a nationwide real estate development and investment firm specializing in the acquisition, development, and management of commercial and industrial real estate throughout the United States. IRG, through its affiliated partnerships and limited liability companies, operates a portfolio containing over 120 properties in 28 states with over 100 million square feet of rentable space. IRG is nationally recognized as a leading force behind the adaptive reuse of commercial and industrial real estate, solving some of America’s most difficult real estate challenges. Learn more at www.industrialrealtygroup.com.

About City of Federal Way
Strategically located on Interstate 5 between Seattle and Tacoma in King County, Federal Way is home to 90,760 residents and a Puget Sound population of over 3 million. Federal Way is known for its majestic views, quality parks and public facilities, and business friendly environment. Incorporated in 1990, Federal Way operates a Mayor-Council form of government and is recognized for the provision of quality public services, excellent streets and city infrastructure, desirable neighborhoods, and quality public safety services. Learn more at www.cityoffederalway.com.