Rush Medical Office Lands $27M First Mortgage

CHICAGO-The Midwest Orthopaedics at Rush has secured $27.4 million first mortgage financing. The loan was arranged by Michael Sieman, SVP and senior director of NorthMarq Capital’s Chicago office, through an unnamed national bank.

Sieman says, “this 80% loan-to-cost, 10-year, fixed-rate, on-recourse loan was structured as a two-year forward take-out for the new headquarters of Midwest Orthopaedics at Rush.”

The medical facility totals 117,000 square feet and is owner occupied. Financing this type of deal comes with a number of challenges, according to Sieman.

“In a deal that presented many challenges, the lender was willing to design a unique debt solution that successfully addressed the borrower’s concerns,” Sieman says.

“Not only was the lender willing to write a forward commitment for over 2 years at a time when few in the market would do so, but they then funded based on the original terms of that commitment. The lender is to be commended for structuring a very competitive deal and funding based on the original commitment in a difficult economic environment.”

The new building took advantage of green materials in the construction process. For example, the roof lowers storm runoff by 25% and helps to reduce the heat island effect. Additionally, recycled products were utilized in the concrete, steel and wall boards.