2025 - In September 2024, Orthopedic & Sports Medicine Center of Oregon, a six-physician group in Portland, OR, was ready to move forward with its incumbent bank to finance its new $17.5MM MOB/ASC under what seemed to be favorable loan terms. However, after attending a recent CPOMP conference, the group’s CEO connected with peers who had partnered with CMAC Partners to test the market. Inspired by their success, the CEO encouraged the doctors to meet with CMAC and, as a result, secured significantly lower rates while reducing their required cash equity contribution.

What Caused the Rate Drop?
Two factors – competition and reputation. Once engaged, CMAC issued an RFP to over 20 banks simultaneously, creating a highly competitive bidding environment. Given CMAC’s reputation and its One Bid Policy, banks knew they had to present their most competitive offers upfront. Ultimately, the incumbent bank retained the business—but only after lowering its original rate by 0.60%. This reduction translated to more than $650,000 in present value interest savings.

Overcoming an Appraisal Challenge with an Innovative Solution
Initially, the lending bank approved an 80% loan-to-value ratio, which seemed sufficient … until the appraisal came in substantially under the project cost. The group had expected that its land purchase would cover the equity requirement, but the shortfall created a financing gap. CMAC quickly devised an out-of-the-box solution, structuring a practice loan based on enterprise value to bridge the gap. This approach allowed the doctors to finance 100% of their remaining out-of-pocket costs, ensuring their project moved forward seamlessly. For more success stories on how independent practices are optimizing real estate financing, visit our portfolio.