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News Release: Medical Office Debt Placement – $96M Non-Recourse Financing

MEDICAL OFFICE DEBT PLACEMENT

$96,000,000 Non-Recourse Financing of a Core Medical Office Portfolio

Lender: Commercial Bank
Loan Amount: $96,000,000
Fixed Rate: 1.15% over 10-year Treasury
Loan Term: Ten Year
Amortization: Full Term Interest Only
Guarantee: Non-Recourse

CBRE U.S. Healthcare Capital Markets and Debt & Structured Finance secured a $96,000,000 permanent loan to finance a 490,000 square-foot portfolio of eight class-A medical office buildings in the Chicago suburbs. The non-recourse loan was made to the borrower providing excellent long-term fixed rate debt, including full-term interest only for ten years. The process garnered interest from CMBS, life companies and commercial banks, showcasing the competitive nature of lenders in the market for high quality medical office assets. This strong demand in the market compressed spreads to a very narrow margin.

As the healthcare real estate market has matured to an institutional grade asset class, lenders continue to increase allocations to this sector. Over the last 5-years, the number of commercial banks and life companies seeking opportunities to place debt for healthcare real estate has increased substantially. If you have questions about the market, financings, re-financings or equity needs, please contact Shane Seitz at +1 303 583 2033.

SHANE SEITZ
Senior Vice President
+1 303 583 2033
shane.seitz@cbre.com

JAMES MILLON
Executive Vice President
+1 212 984 8041
james.millon@cbre.com

THOMAS TRAYNOR
Executive Vice President
+1 212 984 8043
tom.traynor@cbre.com

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