California

Steve Bram, David R. Pascale and Brian Asheghian successfully arranged a $6,320,000 permanent acquisition loan of an owner-user medical office building in Beverly Hills, California. The Sponsors occupy over 50% of the building, qualifying for owner user financing. This is the first commercial property the Sponsors own and they will self-manage the property. The subject includes a two story 8,600 square foot medical office footprint with a 3,750 square foot surgical center, numerous doctors’ offices and a private parking lot. The surgical center caters to a very high end client base that enjoy luxury surroundings, designer furnishings, a plush waiting room, private patient suites, three state of the art operating rooms and six private room recovery beds. This size medical building with its’ own surgical center is rare in Beverly Hills; the surgical center use is grandfathered. The property is adjacent to a 5-Star Hotel, providing overnight stays for extended patient recovery. GSP identified a bank that was creative on the loan structure while providing competitive terms including a very competitive rate and no lender origination fee. The loan was sized to 80% loan-to-value ($734 psf), with a 10 year fixed term at 3.42%, amortized over 25 years with a step-down prepayment penalty.