SPOKANE, Wash. – In its largest loan transaction to date,Spokane Teachers Credit Union is doing its part to preserve one ofthe area's historic fixtures.

The credit union recently provided $4.37 million in financingfor the 74,521-square foot Peyton Building, named for Colonel IsaacPeyton, a land developer who bought agricultural properties, minesand properties throughout Spokane. In 1898, he acquired the GreatEastern Block, which is now the Peyton Building, today described asan “elegant historical architecture with state-of the-art officedesign and services” that has received more than $1.9 million inrenovations.

Fully wired for high speed Internet, tenants include attorneygroups, architects, technology firms, associations, and otherprofessionals, said Scott Adkins, STCU director of lending. PeytonBuilding LLC purchased the Peyton Building with financing help fromSTCU, according to Adkins. It is situated in the heart of Spokane'sCentral Business and Entertainment Districts and is listed on theSpokane register of historic buildings.

“This is a good investment for the Spokane Teachers CreditUnion,” Adkins said. “It fits well with our lending model – secure,well capitalized income properties.” Adkins also said that “theborrowers are financially stable and have experience in owningincome property. Together, they own over 20 properties in downtownBellingham 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 dealfor the $672 million credit union. In March, STCU financed $3.5million for the Montvale Hotel, Spokane's oldest standing hotel.Through an alliance with ConoverBond Development, the 36-roomboutique hotel above the Catacombs Pub here will be restored and isscheduled to open in August, according to ConoverBond President RobBrewster.

“We've had many false starts on this project,” Brewster said.“This would not be possible without the dedication and support fromSTCU. STCU has been great to work with.”

Steve Dahlstrom, STCU president/CEO said, “our strength is inour community partnerships. We have better relationships with thecommunity than ever before. The mutually beneficial relationshipwe've formed with ConoverBond is a perfect example of that.”

The two financing projects are part of an effort to beef upSTCU's business services department, said Susan Cerutti-Jensen,STCU's public relations manager. In March, the credit unionreceived approval from the U.S. Small Business Administration toparticipate in its guaranteed loan programs. The business servicesdepartment also recently moved to a new location in the SpokaneCounty Title building here, six blocks down from the STCU's mainbranch. “STCU started its commercial lending business two years agofrom almost a dead stop,” said Adkins, who was hired in late2002.

“The demand from members has been such that STCU has done verylittle advertising.” As the third largest credit union inWashington, STCU serves more than 70,000 members.