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WEYMOUTH, MA-Talk about the price of success–owners of a68,000-sf medical office building here almost needed to choosebetween a plum tenant and favorable financing. The conundrum wascaused by a clause allowing one occupant to expand the three-storyWeymouth Woods Medical Center, a prospect that would typicallyforce owner Campanelli Cos. to settle the 10-year debt early,possibly incurring a costly pre-payment.

“This transaction was challenging,” acknowledges HollidayFenoglio Fowler LP director Gregory LaBine, but the use of a novelapproach has resulted in a $16.5-million first mortgage on the nowfully leased property. Allstate Investments LLC offered the termssought by Campanelli thanks to a mechanism where the existingbuilding and future addition will become separate condominiumsshould the growth occur.