Grandbridge Secures $5.7 Million Mortgage for Dakota Bank Building

Published On: 06.06.11

MILWAUKEE — Grandbridge Real Estate Capital recently originated and closed a $5,700,000 first mortgage loan secured by the Dakota Bank Building in Fargo, North Dakota. The 119,749 square foot office building was originally developed in 1981 as the corporate headquarters for Dakota Bank and Trust, which through a series of mergers, is now US Bancorp. The property, 98 percent leased at the time of closing, includes a master lease to US Bank for almost 70 percent of the space.

Milwaukee-based Grandbridge Senior Vice President Jim Cope and Justin Nelson arranged the acquisition financing through Minneapolis-based Dougherty Funding. The fixed rate loan, arranged for a Southern California-based private REIT, closed with an interest rate of 5.75 percent and a five-year term, amortized over 25 years.

”We were able to overcome the region’s limited investor interest as well as the challenge of US Bank’s near-term master lease expiration by focusing on the strong fundamentals of the area’s economy and the robust demand for quality office space in downtown Fargo. With these hurdles out of the way, the lender was comfortable with the asset’s long-term outlook,” Nelson commented.

About Grandbridge

Charlotte, N.C.-based Grandbridge, a subsidiary of Branch Banking and Trust Company (BB&T), has a broad investor base that includes insurance companies, CMBS investors, pension fund advisors, commercial banks and capital markets investors, as well as its proprietary lending platform, BB&T Real Estate Funding. The company is a Fannie Mae DUS (Delegated Underwriting and Servicing) lender, a Freddie Mac program Plus Seller/Servicer and Targeted Affordable Housing lender, and an approved FHA MAP and LEAN healthcare lender.

Grandbridge, with a current servicing portfolio of more than $24 billion and represents approximately 100 capital providers, arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management as well as real estate brokerage services. More information about the company is available at www.gbrecap.com.

About BB&T

As of March 31, 2011, BB&T is one of the largest financial services holding companies in the U.S. with $157 billion in assets and market capitalization of $19.1 billion. Based in Winston-Salem, N.C., the company operates approximately 1,800 financial centers in 12 states and Washington, D.C. More information about BB&T and its full line of products and services is available at www.BBT.com.