Cronheim Mortgage Arranges $23.8 Million for Hamden Medical Portfolio
David Turley and Janet Proscia of Cronheim Mortgage secured $23.8 million in acquisition financing for a 135,000 SF, two-building medical office building portfolio located just off the Merritt Parkway in Hamden, CT (the “Property”). The funding provided 70% loan-to-cost financing for the Fairfield Co-based client’s $34 million purchase. The loan was sized to an 8.5% debt yield and the rate locked at 4.37% for a 10yr loan term on a 30yr amortization schedule. The lender closed in just 30 days from Application signing in order to accommodate the buyer’s year-end closing requirement.
The Property is 100% occupied with a mix of small private medical practices, regional single-practice groups and Yale New Haven Health System, which leases a cancer treatment center and surgery center at the Property. The Property is a scare commodity in a supply-constrained market. It offers a strong regional location easily accessed from most of New Haven’s northern suburbs, state-of-the art medical facilities and – as occupied by a wide range of generalist and specialty medical practices – the network effect that creates referrals and visibility.
“The client found an attractive acquisition opportunity but had to move quickly in order to meet the seller’s tax-driven 2012 disposition requirement,” explained Turley. “We found a CMBS lender with a strong medical office appetite for an upcoming securitization and leveraged a long-term relationship to convince them to prioritize this over other deals. It came down to the wire, but we closed on time. Both buyer and seller were thrilled.”