Savills arranges $66m healthcare financing
04 May 2011
Savills has arranged $66 million in permanent financing for three brand-new, state-of-the-art medical office buildings that are located in Michigan and Louisiana and total approximately 294,000 sq ft (27,312 sq m).
Two of the properties are located in Michigan, including a 100,000-square-foot building on the campus of Beaumont Hospital in Troy, and a 95,000-square-foot health and wellness center in Rochester Hills situated directly adjacent to the same campus. The third property is a 99,000-square-foot medical office building located on the new replacement campus of Our Lady of Lourdes Regional Medical Center in Lafayette, Louisiana. Overall, the properties are approximately 95 percent leased. The transaction refinanced in-place construction loans for each property.
"Delivering permanent financing for healthcare real estate requires a comprehensive understanding of both the capital markets environment and the unique characteristics of this specialized real estate asset class," said Jeffrey H. Cooper, Executive Managing Director of Savills and head of the company’s North American healthcare real estate investment banking practice. "This refinancing is a good illustration of Savills’ ability to meet the distinctive capital requirements of our healthcare clientele."
"On-campus medical office buildings remain in favour among a wide variety of debt capital sources because of their positive demand drivers and stable tenancy," said Philip B. Mahler, Managing Director of Savills’ healthcare practice. "The response from the market was tremendous on this assignment. Eighteen lenders submitted term sheets for the properties, including most of the active conduits, life companies, debt funds, mortgage REITS and specialty finance companies."
The developer of the three properties is Landmark Healthcare Companies LLC of Milwaukee, one of the country’s leading private developers of medical real estate.
Savills arranged permanent, fixed-rate financing through GE Capital, Healthcare Financial Services.
Savills’ healthcare unit has advised on more than $3 billion in healthcare real estate transactions for developers, public and private REITs, pension funds and private equity investors affiliated with dozens of the country's top healthcare systems.
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