Capital Markets

Capital Markets: Financing equity recaptures

Capital Markets: Financing equity recaptures

How deals are structured when assets are worth more than the debt that’s in place By Erik Tellefson In this column we’ve primarily discussed how various asset classes, including medical office building and laboratory and biotechnology properties, are financed. Today I’ll be sharing the second article in a series which describes various types of financing […]

Capital Markets: Insights into acquisitions financing

Capital Markets: Insights into acquisitions financing

These are a relatively straightforward – but important – type of HRE financing By Erik Tellefson In this column we’ve primarily discussed how various asset classes, including medical office building (MOB) and laboratory and biotechnology properties, are financed. Today I want to start a series of articles describing different types of financing in detail and […]

Grand Palms Assisted Living and Memory Care is a provider of long-term care and rehabilitation services in Orlando, Fla.

News Release: Capital One Closes $162.5 Senior Secured Credit Facility for Palm Garden Healthcare

Bethesda, Md.  (October 24, 2016) – Capital One announced today that it served as sole lead arranger and administrative agent for a $162.5 million senior secured credit facility consisting of a real estate term loan, a capex line of credit and an asset-based revolver. Palm Garden Healthcare, the borrower, owns 14 skilled nursing facilities and an […]

Erik Tellefson

Longfellow Cambridge case study

A strong example of a life science biotech acquisitions and loan transaction By Erik Tellefson In my previous article, I shared the ins and outs of financing life science and biotechnology properties – an important and growing component of the healthcare real estate asset class. These buildings are in some ways similar to medical office […]

Capital Markets: Life science and biotech real estate

Capital Markets: Life science and biotech real estate

These buildings are similar to medical offices, but even more specialized By Erik Tellefson Life science and biotechnology buildings are an important part of the healthcare real estate landscape; they are similar to medical office spaces, but offer a set of even more specialized considerations for borrowers and lenders. Like medical office buildings (MOBs), these […]

Erik Tellefson

Capital Markets: Parking is an important factor

It plays a key role in determining the value of and ability to finance an MOB By Erik Tellefson Parking is an important factor in determining the value of and ability to finance a medical office building (MOB). While a good location is essential, the lack of parking spaces can cause patients to use other […]

Capital Markets: The impact of anchor tenants

Capital Markets: The impact of anchor tenants

Evaluating the effects of influential tenants on multi-asset MOB portfolios By Erik Tellefson Portfolios of medical office buildings (MOBs) have some built-in advantages for buyers and investors. People still need medical care, and that care, for the most part, is still delivered face-to-face through in-person visits.

Capital Markets: Third-party reports are important

Capital Markets: Third-party reports are important

Lenders rely on objective outside assessments when underwriting MOB deals By Erik Tellefson Third-party reports can play a critical role in medical office building (MOB) transactions. These are reports on the building and the site and are required and relied upon by lenders, and often by buyers. Third-party reports are performed by third parties (hence […]

Capital Markets: Manage your loan’s interest rate risk

Capital Markets: Manage your loan’s interest rate risk

There are ways borrowers can protect themselves from potential rate increases By Erik Tellefson For a relatively stabilized asset class like medical office buildings (MOBs) – where the primary increase in cash flow is often via rental escalators – it is important to be able to manage interest rate risk while still being able to […]

Capital Markets: Consider risk-adjusted pricing

Capital Markets: Consider risk-adjusted pricing

Lenders that offer it can be a good option for medical office building financing By Erik Tellefson Risk-adjusted pricing is pricing that is commensurate with a lender’s level of perceived risk in a transaction. Typically, the lender’s level of perceived risk for the purposes of risk-adjusted pricing is related to leverage or the amount of […]

Capital Markets: Better together

Capital Markets: Better together

The advantages of loan consolidation through refinancing and recapitalization By Erik Tellefson Thanks to the many disparate sources of capital now available to medical office building investors, borrowers can often find themselves with multiple individual loans, frequently from different lenders. Often an investor will use a different financing source for construction loans, a second financing […]

Capital Markets: The importance of basis in MOB loans

Capital Markets: The importance of basis in MOB loans

Understanding the implications of property age, location and specialization By Erik Tellefson Commercial real estate wisdom generally states that “there is no bad loan, only a bad basis,” and that still largely holds true—especially in medical office lending.

Capital Markets: MOB expense reimbursements

Expense reimbursements in leases have an impact on loan underwriting, terms By Erik Tellefson Medical office building (MOB) leases include expense reimbursements, which is the amount or percentage that the lessee pays the landlord for building expenses. The amount and type of the reimbursements are effectively whatever can be written into the lease. However, there […]

Capital Markets: MOB bridge loans provide flexibility

Shorter-term bridge lending options are an important borrower consideration By Erik Tellefson Bridge loans, as defined for this article, are typically shorter-term (three years or less) financing instruments that allow for a particular borrower or asset event to occur prior to a sale or more normalized financing.

Capital Markets: MOB equity recapture opportunities

Capital Markets: MOB equity recapture opportunities

Borrowers can benefit from recapitalizing via debt on under-levered assets By Erik Tellefson Medical office building (MOB) loans that reach maturity or their freely pre-payable period are often under-levered.