VENICE, FLORIDA – November 5, 2024 – Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, has arranged $20.8 million in financing for the construction of a 40-private room, inpatient rehabilitation hospital in Venice, Florida (Sarasota MSA). The MMCC Capital markets team was led by Dallas-based senior director Kevan McCormack. who specializes in financing healthcare and senior living projects.
McCormack worked on behalf of the sponsorship group consisting of Astrea Development and Exalt Health to secure 69% of the capital stack. The 33% loan-to-cost bank loan was structured at SOFR + 300, floating for two years followed by a three-year mini-perm at SPFR + 275 fixed. The 36% loan-to-cost PACE financing was structured at a 7.53% fixed interest rate with a 25-year amortization and three years of interest only.
The hospital will be 100% pre-leased for 20 years to Exalt Health. Exalt will offer inpatient services such as physical, occupational, speech, and respiratory therapy, internal medicine, radiology, hemodialysis, case management, and nutritional consults. The project will be managed by Astrea Development, led by Erik de Vries, who specializes in the development of healthcare and mixed-use real estate across the United States.
“We were able to provide and execute upon the optimal capital structure between the PACE and construction financing,” said McCormack. “The level of interest we received is a testament to the sponsor and the critical need of rehabilitation hospitals in many markets throughout the U.S.”
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About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2023, MMCC closed 1,076 transactions totaling $6.7 billion. To learn more, please visit: marcusmillichap.com/financing
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