News

Other News

  • September 6, 2019
  • Exploring the Inland Northwest’s CRE, Finance Markets
  • August 19, 2019
  • Newmark Realty Capital Expands Production and Servicing Team with the Addition of New York’s Rose Hill Group Producers and Staff
  • August 15, 2019
  • Newmark Realty Capital Celebrates Ten Years Of Dedicated Operations In Spokane
  • August 13, 2019
  • Loan Production Associate (Seattle)
  • June 3, 2019
  • CMBS Financing Still Has Big Benefits
  • May 29, 2019
  • Why CMBS Debt Has Fallen Dramatically in Recent Years
  • May 1, 2019
  • Underwriting Holds True Across Portfolios for Q2
  • April 19, 2019
  • Newmark Realty Capital Completes $316.5 Million of Commercial Mortgages During 1Q2019
  • March 28, 2019
  • Why You Need a Full Financial Workout Even During a Boom
  • March 22, 2019
  • Real Estate Loan Administrator – Phoenix
  • February 28, 2019
  • Newmark Realty Capital Celebrates Completion of Seattle’s Arrivé Tower
  • February 7, 2019
  • Diversity Will Benefit Your Bottom Line
  • February 6, 2019
  • Newmark Realty Capital Completes $2.47 Billion of Commercial Mortgages During 2018; Ends Year with 4Q2018 Production Totals of $669.1 Million across 73 Transactions
  • February 4, 2019
  • SB 826 Could Shake Up California’s Biggest CRE Firms
  • January 3, 2019
  • Newmark Realty Capital Expands Los Angeles Production Team; Names Paige Serden As Executive Vice President For Commercial Mortgage Production
  • December 7, 2018
  • Newmark’s George Mitsanas on What’s Driving Commercial Mortgage & Investment Finance
  • October 16, 2018
  • Newmark Completes $712.7 Million of Commercial Mortgages During 3Q2018
  • July 26, 2018
  • Newmark Completes $691 Million of Commercial Mortgages During 2Q2018
  • July 10, 2018
  • Stancorp’s Mark Fisher Shares Insight on CRE and the Value of MBA Engagement
  • June 5, 2018
  • Newmark Q&A: What’s Driving Southwest CRE Lending?
  • May 15, 2018
  • CREFC: California Legislation To Watch
  • May 7, 2018
  • Time for a Coordinated Bay Area Displacement Policy
  • May 3, 2018
  • Newmark Completes $409 Million of Commercial Mortgages During 1Q2018
  • March 26, 2018
  • City Welcomes Big Storage Center
  • March 6, 2018
  • Newmark Looks at Defining Trends in the Commercial Real Estate Market for 2018
  • February 9, 2018
  • Newmark Expands San Francisco Production Staff With Key New Hires; On-Boards Five Member Team Specializing In Commercial Mortgage Finance
  • January 25, 2018
  • Newmark Completes $2.5 Billion of Commercial Mortgages During 2017
  • November 27, 2017
  • Despite Forecast Increases, Rates At Historic Lows
  • November 8, 2017
  • Newmark® Completes $726MM In Commercial Mortgages During 3Q2017
  • October 24, 2017
  • Newmark’s Michael Heagerty Elected to MBA’s 2018 Board of Directors
  • October 11, 2017
  • Newmark Names Producers Andy Bratt And Demetri Koston as Partners With Largest Privately-Held Commercial Mortgage Bank in Western U.S.
  • September 13, 2017
  • Real Estate Loan Administrator – San Francisco, CA
  • August 7, 2017
  • Newmark Completes $731 Million in Commercial Mortgages During 2Q2017
  • June 29, 2017
  • Newmark Secures $151 Million of New Financing on Behalf of Presson Companies for 30 Property Arizona Industrial Portfolio
  • June 19, 2017
  • Newmark Secures $68M Financing for Silicon Valley Assets
  • June 5, 2017
  • Creating a Better Borrower Experience
  • April 12, 2017
  • Newmark Completes $517 Million in Commercial Mortgages During 1Q2017
  • April 4, 2017
  • Keeping Focus on Controlled Variables
  • March 7, 2017
  • Owners of Stabilized Properties Increasingly Turning to Floating-Rate Loans
  • February 27, 2017
  • CMBS Is A Vital Part Of The CRE Finance Environment
  • February 6, 2017
  • Multifamily Financing Tightened, But Not Stopped
  • February 1, 2017
  • JV Secures $325M in Financing to Revive Potala Tower Hotel, Apartment Project in Seattle
  • February 1, 2017
  • Real Estate Loan Production Associate (Los Angeles)
  • January 23, 2017
  • Newmark Completes More Than $2.4 Billion of Commercial Mortgages in 2016
  • January 19, 2017
  • Newmark Turns 10 in Seattle; $421MM Pacific Northwest Production in 2016
  • December 16, 2016
  • Newmark Turns 25, Reaches $30 Billion in Commercial Mortgages

Exploring the Inland Northwest’s CRE, Finance Markets

September 6, 2019

By Dennis Kaiser, Connect Media

The Pacific Northwest’s Spokane market may not be Seattle-adjacent, yet the Eastern Washington area has emerged as a prioritized secondary market that presents a compelling opportunity from a demand perspective. Newmark Realty Capital’s Demetri Koston, partner and operator of Spokane production office, outlines a host of intriguing considerations regarding the Inland Northwest CRE and finance markets. Check out his responses in our latest 3 CRE Q&A.

Q: How do you define the Inland Northwest and why does Newmark Realty Capital staff and maintain a dedicated production office in the region?
A:
We opened the Newmark Realty Capital Spokane production office 10 years ago because of the high demand for structured finance solutions, and the value proposition of “boots on the ground” service for developers and real estate investors that are every bit as sophisticated as our clients focused on Seattle, San Francisco and elsewhere. Many of our clients active in major MSA markets look at this as a prioritized secondary market. So, recognizing 10 years ago that enough of those investor/developer clients were active in Eastern Washington/Oregon, Northern Idaho, and Western Montana region…aka “the Inland Northwest”…deploying principal leadership and opening a local office was a logical evolution to identify healthy growth markets for our correspondent lenders seeking allocations with strong sponsorship and vetted fundamentals.

Q: What are the fundamentals and product types driving the Inland Northwest commercial real estate market for investor/developer and lender clients alike?
A:
The multifamily market is hot nationally, and the Inland Northwest is no exception. Currently, the region enjoys a robust and growing economy, offers several premier and growing universities and a workforce quality of life that appeals to a roster of top private business and corporate brands. The Inland Northwest Industrial market is also performing at a healthy clip, with new office product starting to follow suit. We are seeing new development of smaller footprint buildings in the 60-70,000-square-foot range supporting distribution, consolidation and light manufacturing. We are also starting to see some new office/industrial flexible space coming online via a mix of new development and asset repositioning.

Because we work with our investor clients to identify and execute on optimized mortgage and finance structures, we tailor our approach to the specific needs of the project at hand. However, refinancing for cash out or long-term stability and cash flows in a historically low interest climate remains a viable option for owners, as are allocations for vetted sponsors acquiring or developing into the market.

This is especially true in the multifamily market, where the attractive structure options are vast. Our ability to access Freddie/Fannie secondary permanent loan financing provides highly competitive alternatives to our life insurance companies and pension funds. From a lender’s standpoint, placing the right allocation and having Newmark servicing that loan through its life makes NRC a strategic partner for these regional projects.

Q: What are the top markets of the Inland Northwest?
A:
Spokane and Coeur d’Alene are frankly the communities we see exceeding expectations from both our client borrowers and lending partners alike. We have been fortunate to be here for the past 10 years, developing strategic relationships as a trusted advisor. The Spokane/Coeur d’Alene area is not a sleepy tertiary area, nor is it a highly-urbanized metro like Seattle or Portland. In fact, the Spokane/Coeur d’Alene regional population of roughly 720,000 makes it a small enough community for quality of life, but big enough to demand appropriate housing and commercial developments meeting growth and economic needs in tandem. The fact that Amazon has broken ground on a 2.5-million-square-foot distribution facility near the Spokane International Airport is a catalytic moment. So is a construction loan on a new residential tower we recently placed for a downtown project in Coeur d’Alene. It’s a project that will bring economic stimulus to downtown, making additional commercial development more viable.

In closing, I think it is fair to say that Eastern Oregon and Washington and the state of Idaho are all appealing commercial markets for any savvy investor seeking rates of return outside the major MSA markets of the coastal Northwest.

Share this Story

Wordpress Social Share Plugin powered by Ultimatelysocial