Michigan & Louisiana Medical Office Debt Placement
Savills Studley was retained by a national developer to advise the company with respect to the refinancing of three newly constructed Class A medical office buildings totally 294,000 square feet, located in Michigan and Louisiana.
The portfolio had achieved 92% occupancy with approximately 43% leased to a hospital. The newly constructed properties are located on or adjacent to hospital campuses operated by an investment-grade rated systems – the dominant hospitals in their respective regions.
Due to the strength of the portfolio, the Savills Studley team pursued a broad range of debt markets, including life insurance companies, CMBS lenders, national and regional banks, and specialty lenders.
Savills Studley received confidentially agreements from 26 lenders, 18 of which submitted term sheets. Ultimately Savills Studley selected a specialty finance company which invested $68 million in total proceeds, representing approximately 80% loan to value.