ORADELL, NJ—NorthMarq Capital's New Jersey office has arranged a $16.5 million refinancing for the New Jersey Health Care Center, a 75,000-square-foot medical office building at 680 Kinderkamack Road in Oradell, NJ. Gregory Nalbandian, managing director, structured the transaction with a 10-year term and 30-year amortization at a very aggressive interest rate. The financing represents a full cash-out refinance for the owner less than a year after acquiring the property. NorthMarq arranged the financing through its correspondent relationship with Sentinel Investments. 

“Our client purchased this asset from a local bank who had foreclosed on the property after the occupancy plummeted to 54 percent,” says Nalbandian. “Through hands on management and their extensive reach within the medical community, the sponsor created significant leasing momentum at the property. Within the first six months of ownership, the property was stabilized at over 90 percent occupancy.

The building's owner is a successful urologist, Nalbandian tells GlobeSt.com exclusively. The doctor owns a significant portfolio of medical properties and his strong relationships with other medical groups has led them to locate attractive practices in his buildings.

The prior owner was not well-capitalized and could not make tenant improvements on the building, says Nalbandian.

"This particular building is almost like a medical mall," says Nalbandian. "It has an onsite surgical center, it's got radiology, it's got blood work, it's got an onsite pharmacy. It's lioke one-stop shopping for anyone who goes in the building."

Sentinel understood the story and that this building is the top medical building in this sub-market, and provided a full 75 percent loan-to-value ratio, which represented a loan well above $200 per square foot, enabling our client to cash out his equity through this substantial value creation, Nalbandian says.