Lance and Brett Bradford discuss a recent transaction and their 2018 expectations
By Erik Tellefson
In continuing with our “Spotlight on” series we are talking with private medical office building (MOB) investors. This month we are going over a recent transaction with Lance and Brett Bradford of Stable Development, a regional developer and investor, and what they expect in their world for 2018.
Erik: Gentlemen, can you please tell us about your group, what you do and some of your background?
Stable: Lance Bradford, president; Brett Bradford, VP finance, construction & development; Sal Guy, VP leasing and property management; Mark Martino, architect, project management.
Stable Development has been developing build-to-suit, Class A professional and medical office buildings in the Las Vegas valley since 2005. We have developed over 550,000 square feet of commercial space between Las Vegas, Henderson and Summerlin. We are a full-service firm focused on land development fronting major marterials in strong demographic and medical corridors, leasing and the property management of our facilities. We have remained strong and in growth mode, even through the 2008 financial recession, with our strategy of hitting pre-leasing benchmarks prior to commencement of any construction. We do not land bank and we do not develop spec properties.
Erik: We have financed multiple transactions with Stable Development dating back to 2012 including mostly single assets in and around Las Vegas. What are you primarily focusing on in today’s market, and how far you are willing to go outside of your home base? Does that change for investment or property services like leasing and management?
Stable: Our developments have predominantly been professional and medical office since our conception. We have been residents of Las Vegas since the ‘70s and believe the Las Vegas market has many opportunities to see continued growth over the next five years. The Las Vegas Raiders will make our valley their home, the Las Vegas Strip will continue to thrive and the residential rooftops in the Las Vegas valley will continue to expand.
We choose to focus geographically on the Las Vegas valley, given our knowledge of the market and relationships that we have developed in the area. Our company has remained open to the idea of projects in several other states, but understand we have a distinct advantage with our experience and relationships here.
Erik: You recently announced a large transaction that included our senior secured first mortgage debt, mezzanine financing by Kayne Anderson and sourced by Michael Bennett at MRXE on an asset in the Las Vegas area. Can you give us some background?
Stable: We purchased the premier Class A medical office property in Summerlin at the end of 2014 at auction for an incredible price. At the time of acquisition, the building was roughly 40 percent occupied and not well maintained. What the property did do was fall into our model of Class A facilities along major arterials in strong demographic and medical corridors.
Following the acquisition, we completely renovated the building and adjacent parking garage, changed the name to “The Parkway,” and have now completed leasing on all vacant suites with long-term leases and a great mix of medical tenants.
Erik: As a regional developer/investor do you feel that level of focus is an advantage for you, your tenancy and your customers?
Stable: Yes, the knowledge of these tighter markets and our strong relationships give us a distinct advantage over competitors. Real estate expertise is most important when things don’t go so well with a project, and these relationships and expertise in the specific market give us a high rate of resolution and success.
Erik: This year has been a fast start for us in terms of deal activity. What are you seeing in your world, and what are your expectations for the balance of the year?
Stable: We are active in new development projects in Las Vegas, as we strongly believe the population will grow to over 3 million based upon our research.
Specifically, we anticipate finishing a current office park construction project and initiating four new projects into development before year-end.
Erik Tellefson is Managing Director with Capital One Healthcare and leads medical office and medical property lending. He has 18 years of experience in commercial real estate finance, including 13 years focused on healthcare, and works with clients to finance acquisitions, refinance existing debt, support working capital needs and fund growth initiatives.
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