MILWAUKEE-Landmark Healthcare Companies LLC, based here, has acquired $66 million in permanent financing for three medical office buildings in Michigan and Louisiana. The transaction refinanced in-place construction loans for each property.
The properties include a 100,000-square-foot building on the campus of Beaumont Hospital in Troy, MI and a 95,000-square-foot health and wellness center in Rochester Hills directly adjacent to the same campus. The third property is a 99,000-square-foot medical office building on the new campus of Our Lady of Lourdes Regional Medical Center in Lafayette, LA. The properties are 95% leased.
Savills, based in New York City, arranged the financing through GE Capital, Healthcare Financial Services. Jeffrey Cooper, executive managing director with Savills and head of the company’s North American health care real estate investment banking practice, says financing was easy to obtain because of the asset type and tenant’s credit rating.
“All through the recession and today it’s not been difficult to get loans for medical office buildings,” Cooper tells GlobeSt.com. “The cash flow remains constant, and they don’t really have tenant failures, with renewal rates running at about 80% to 90%. Also important is that these are investment-grade hospital systems.”
He says the MOB asset class will continue to see success through 2011. “There’s a lot more people using ambulatory services. Years ago if you got your tonsils taken out, it would have been inpatient work. Now, because insurance is only allowing a certain amount of money to cover the costs, it’s cheaper to do it as ambulatory surgery,” Cooper says.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.