Healthcare

George Smith Partners successfully placed the $18,900,000 rate and term refinance of a 200,000 square foot non-medical administrative building entirely occupied by the University of Wisconsin Medical Foundation. The asset is well located in close proximity to the University of Wisconsin and other facilities supported by the tenant. The property is a four-story office building constructed specifically for the tenant in 2007, comprised of 160,000 square feet of office space and 40,000 square feet of storage, situated on a 10-acre lot. The non-recourse loan is fixed for 8 years at 4.65% before adjusting to then market rates. Challenge: When GSP accepted this assignment, the residual term of the lease was only 7 years for the single tenant user. The shortness of the remaining lease term was unattractive to a majority of lenders in light of the Borrower’s request for a 10-year term. Ownership is structured as a 74 member LLP with no owner holding more than 4% of the shares. Solution: GSP identified a lender experienced in designing loans for single-tenant properties with similar ownership structure. The lease term was amended slightly to add sufficient term for guaranteed rental income during the 10 year term of the loan.