March 24, 2017
All was set to go on a $16MM MOB to house four ophthalmology specialty practices in Colorado. The developer had done a thorough job of negotiating the most favorable financing package possible among the banks in and around the area. Then, just before signing the bank’s commitment letter, the developer learned of a similar deal that had closed in another area at even better terms.
The developer confirmed that CMAC had closed several deals that were substantially more favorable than the market. In a bold move, they recommended that the borrower hold off signing the commitment letter to allow CMAC an opportunity to negotiate with the chosen lender.
CMAC found that the bank had provided a rate and terms that were as good as had been seen in the Colorado market, but not as good as what CMAC had achieved with this same bank in recent deals in other states. Once CMAC brought this additional information to the local bank, that banker was able to replicate the non-regional terms. The savings in interest and fees? More than $1,300,000.