April 6, 2017
An orthopedic clinic in North Carolina began development of an 83,000 square foot medical office building and ambulatory surgery center. The surgery center takes approximately 22,000 sf of the new facility, which is partially owned by another hospital.
The new building will be built with no cash out of pocket by the physicians, low limited personal guarantees, and a 7-year fixed rate of 3.18% under a loan agreement negotiated by CMAC that was nearly two years in the making.
As the clinic expanded its operations and added doctors, it needed to enlarge its facilities to accommodate the additional patient flow and surgical procedures. The financing for the project was complicated by the initial plans to build separate buildings in two stages. According to the group’s CEO, “This project was a major undertaking. I not only needed a team that could secure the most favorable financing rate and terms, but I needed the confidence that someone could help me navigate the complexities that come with a project like this.” CMAC’s team is a combination that understands the business of healthcare while providing expertise in negotiating with commercial banks. “Not only did they save our group a tremendous amount of money from a rate standpoint, but the time-value benefit cannot be understated. CMAC’s involvement allowed me to focus on the practice’s day-to-day operations,” said the CEO.
Based on previous experience, the clinic engaged CMAC to put the financing pieces together. When the new project came up, there was no question that they wanted the market fully vetted. Because CMAC has relationships with almost every major commercial banking institution across the nation and sees thousands of proposals, it constantly knows where the market is at any point. CMAC uses the market knowledge to leverage the best deal possible.
According to Liz Allport, CMAC’s Director of Finance “as a former banker, I know the pressure the local relationship bankers are getting from their superiors to squeeze as much profit out of a deal. It’s my job to squeeze back."
100% LTV – 3.18% 7 year Fixed – Limited Guarantee