Healthcare

George Smith Partners secured the $1,440,000 acquisition loan for two non-contiguous commercial properties for the same Sponsors. Our Sponsors, two physicians that will relocate their practice into the first space, did not qualify for an SBA execution as they will occupy less than 50% of net rentable. Traditional institutional capital providers pushed back on the non-contiguous collateral and not currently zoned for medical office occupancy, adding entitlement risk to the structure. George Smith Partners identified a lender that exclusively underwrites medical professionals. Their expertise allowed for a 20% increase the Sponsors’ underwritten global income and provided an increase in net loan proceeds to the funded 80% of cost. Fixed for 7 years at 3.8%, a 25 year amortization was negotiated (versus the traditional 20 year amortization usually offered), with a three year step-down prepayment.