Prosperity Medical Heart in Fairfax, Va., is a part of Harrison Road’s just lately refinanced portfolio. Picture courtesy of Gittleson Zuppas Medical Realty
A Harrison Road funding automobile has refinanced a Mid-Atlantic medical facility portfolio comprising eight properties within the Better Washington, D.C., area with $125.9 million in financing supplied by Thorofare Capital.
The three-year, floating-rate mortgage mortgage is the most important single financing transaction ever supplied by the Los Angeles-based industrial actual property debt supervisor, which is an affiliate of asset administration platform Callodine Group LLC.
Felix Gutnikov, Thorofare’s principal & head of originations, executed the transaction together with Jacob Yi, managing director of credit score, and Nicholas Krueger, affiliate director of originations.
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Newmark Healthcare Capital Markets Group represented the borrower. The workforce was led by Managing Director John Nero and Govt Managing Director Ben Appel, together with Senior Managing Administrators Jay Miele and Michael Greeley.
Describing the portfolio as a definite providing within the market, Nero mentioned in ready remarks the expertise of each borrower and lender within the medical workplace sector was key to the profitable execution.
Gutnikov mentioned in a ready assertion Thorofare has fostered a relationship with Harrison Road, a Chicago-based funding administration agency targeted on different actual belongings. He mentioned the transaction is the fruits of prior collaborations and the agency’s belief in Thorofare to execute a multi-property, multi-state portfolio financing.
The properties are all situated in main markets with robust demand for health-care providers. A good portion of the portfolio is situated on or adjoining to main hospital campuses inside these markets.
One of many belongings included within the financing was 2440 M St. in Washington, D.C., an eight-story, 116,400-square-foot constructing with 28 leases, in accordance with CommercialEdge information. A second property was Prosperity Medical Heart, a three-building, 253,293-square-foot campus at 8501 Arlington Blvd. in Fairfax, Va., with 21 leases. The asset contains 2,400 sq. toes of retail area.
CommercialEdge reported each properties beforehand had loans supplied by John Hancock and originated in November 2019 that have been maturing in November 2029. They’re each managed by Gittleson Zuppas Medical Realty.
Earlier portfolio acquisitions
Thorofare and Harrison Road solely supplied the names and areas of 2440 M St. and the Prosperity Medical Heart. It didn’t disclose the areas of the extra belongings that have been a part of the financing.
Nevertheless, each properties have been a part of a number of giant transactions in late 2013 and early 2014, when Harrison Road acquired the whole metro Washington, D.C., medical workplace portfolio owned by Washington Actual Property Funding Belief. Industrial Property Govt reported on the time that the REIT bought its total 1.5 million-square-foot medical workplace portfolio for an mixture $500 million to Harrison Road Actual Property Capital LLC. The primary transaction closed in November 2013 and comprised medical workplace buildings totaling 877,000 sq. toes, two workplace belongings with vital medical workplace tenancy and a parcel of land for $307.2 million. 2440 M St. was a part of the primary transaction that closed in November 2013.
Prosperity I, II and III at 8501, 8503 and 8505 Arlington Blvd. in Fairfax together with two different buildings have been a part of the ultimate sale transactions that closed in January 2014 for a complete of $193.6 million. The sale worth for Prosperity Medical Heart was $114.6 million, in accordance with CommercialEdge information.
