Commercial Real Estate Lender - Pacific Security Capital - Provides $8.3 Million Industrial Property Loan

Beaverton, OR, October 11, 2005 –- http://www.pacificsecuritycapital.com – Pacific Security Capital (“PSC”), a leading commercial real estate lender, announced today that it has provided an $8.3 Million industrial property loan to a local Portland-area property developer.

The loan was collateralized by a 200,000 square foot industrial property with an office component. The building is occupied by a single non credit tenant.

“The owner was able to negotiate a lease extension which allowed them to lock down today’s low interest rates and pull some equity out of the transaction,” said Michael Wenzlick, Senior Managing Director, Pacific Security Capital. “Even though the tenant was not investment grade we were able to provide long term non recourse financing for the borrower.”

“Concurrent with the loan closing, Pacific Security Capital coordinated the defeasance of the existing loan,” said Wenzlick, “which is a form of loan prepayment that is being seen more and more in the commercial real estate financing world today.”

Defeasance is a prepayment provision that is increasingly being used by commercial real estate lenders to substitute collateral and increase the predictability of payment streams, meaning that the lender can offer the borrower a lower interest rate.

Pacific Security Capital closed the loan at the end of September and provided a ten year fixed interest rate of approximately 5.3%.


For more information on commercial loans please contact commercial real estate lender Pacific Security Capital at www.pacificsecuritycapital.com or call 1-800-844-6085