Cronheim Mortgage Arranges $10.3 Million For King of Prussia MOB
David Turley and Janet Proscia of Cronheim Mortgage secured $10.3 million in financing for a 74,326 SF medical office building located just off the Schuylkill Expressway in King of Prussia, PA. The loan was placed with a CMBS lender on a 10 year term with a 30 year amortization schedule.
The client, a major Philly-based developer, had an upcoming loan maturity that required an expedited closing. In spite of losing a 5,000 SF tenant during the Application process, Cronheim was able to get the loan closed in 45 days from Application signing. The Property is a brick-clad Federal-style office building located at the intersection of South Gulph Road and South Henderson Road in southern King of Prussia. It sits at the bottom of the exit ramp from a brand new interchange of the Schuylkill Expressway.
The Property was originally built in 1946 as a schoolhouse and converted to medical office use in 2000. It is 82% occupied by nine tenants and anchored by a regional spine/orthopedic practice, a regional hand rehabilitation/therapy practice and private wealth management firm.
“The client was initially contemplating a short-term bank loan to maintain maximum flexibility for a sale in the next couple years,” explained Proscia. “We helped him through a thorough evaluation of his options. Given the current rate environment and uncertainties about the future borrowing climate, we recommended a leveraged long-term refinance to create a second saleable asset: attractive, assumable financing. When that option was chosen, we executed quickly to meet the loan maturity deadline.”