AUSTIN--CBRE Capital Markets Debt & Structured Finance group has arranged a little over $16 million in acquisition financing for Southwest Medical Village, a 100 percent occupied class A medical office building in Austin.

Working on behalf of an undisclosed borrower, CBRE Capital Markets secured a 10-year loan with a sub-3.5 percent fixed interest rate, with eight years of interest-only payments at a 60 percent loan-to-value ratio. The loan was originated through the CBRE Capital Markets relationship with PNC Bank NA.

“The borrower capitalized on today's incredible interest rate environment, especially for low- to moderate-leverage loans on strong assets such as this,” Greg Greene, senior vice president with CBRE Capital Markets, told GlobeSt.com. “The loan structure, with its eight-year interest-only period, serves them very well.”

Completed in January 2014, the fully leased asset has approximately 70,000 square feet of medical office space and offers above-code parking with a generous parking ratio of 5.1 per 1,000 net rentable square feet. The property, at 5625 Eiger Road, is anchored by Premier Family Physicians, an independent, physician-owned family medicine practice, and also includes 18 other specialty practices.

Murray Kornberg, Doug Seylar, Scott Larson and Ben Bastian, of CBRE's Debt & Structured Finance team in Minneapolis, partnered with Greene, Scott Lewis and Taylor Pearce, of CBRE's Debt & Structured Finance team in Dallas, to source the acquisition loan for the borrower.