SPOKANE, Wash. – In its largest loan transaction to date, Spokane Teachers Credit Union is doing its part to preserve one of the area's historic fixtures.
The credit union recently provided $4.37 million in financing for the 74,521-square foot Peyton Building, named for Colonel Isaac Peyton, a land developer who bought agricultural properties, mines and properties throughout Spokane. In 1898, he acquired the Great Eastern Block, which is now the Peyton Building, today described as an “elegant historical architecture with state-of the-art office design and services” that has received more than $1.9 million in renovations.
Fully wired for high speed Internet, tenants include attorney groups, architects, technology firms, associations, and other professionals, said Scott Adkins, STCU director of lending. Peyton Building LLC purchased the Peyton Building with financing help from STCU, according to Adkins. It is situated in the heart of Spokane's Central Business and Entertainment Districts and is listed on the Spokane register of historic buildings.
“This is a good investment for the Spokane Teachers Credit Union,” Adkins said. “It fits well with our lending model – secure, well capitalized income properties.” Adkins also said that “the borrowers are financially stable and have experience in owning income property. Together, they own over 20 properties in downtown Bellingham and the property has strong tenants including the U.S. Federal Defenders, Niko's, and Coffman Engineers.”
This is the not the first multi-million property financing deal for the $672 million credit union. In March, STCU financed $3.5 million for the Montvale Hotel, Spokane's oldest standing hotel. Through an alliance with ConoverBond Development, the 36-room boutique hotel above the Catacombs Pub here will be restored and is scheduled to open in August, according to ConoverBond President Rob Brewster.
“We've had many false starts on this project,” Brewster said. “This would not be possible without the dedication and support from STCU. STCU has been great to work with.”
Steve Dahlstrom, STCU president/CEO said, “our strength is in our community partnerships. We have better relationships with the community than ever before. The mutually beneficial relationship we've formed with ConoverBond is a perfect example of that.”
The two financing projects are part of an effort to beef up STCU's business services department, said Susan Cerutti-Jensen, STCU's public relations manager. In March, the credit union received approval from the U.S. Small Business Administration to participate in its guaranteed loan programs. The business services department also recently moved to a new location in the Spokane County Title building here, six blocks down from the STCU's main branch. “STCU started its commercial lending business two years ago from almost a dead stop,” said Adkins, who was hired in late 2002.
“The demand from members has been such that STCU has done very little advertising.” As the third largest credit union in Washington, STCU serves more than 70,000 members.
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