Cronheim Mortgage Arranges $9,400,000 for Connecticut Medical Office Building
Fixed-rate financing includes expansion proceeds
Dev Morris and Andrew Stewart of Cronheim Mortgage have arranged $9.4 million for a medical office building located in Wethersfield, CT. The rate was locked 3 months prior to closing, allowing the borrower, Phoenix Medical, LLC, to obtain a rate of 3.65% for 7 years. At closing, $7.15 million of the loan amount was funded; the remaining $2.25 million will be funded as a construction loan for a 10,000 sf expansion.
The subject property is currently a 45,850 square foot medical office building located in the Hartford, Connecticut suburb of Wethersfield, just 6 miles south of the Central Business District. The property is currently 100% occupied by a mix of medical tenants including a sleep center, general physician’s office, and a multi-specialty health center. The sponsors intend to expand the existing structure by an additional 10,000 square feet, into which Connecticut Multispecialty Group MSO, an existing tenant, has committed to expand and sign a new long term lease. The total property size will increase to 55,850 square feet upon completion of this expansion.
According to Dev Morris, “We were pleased to be able to secure fixed rate financing with built-in flexibility, so the borrower could accommodate a major tenant’s need for additional space. The tenant’s desire to expand in this location further reinforces the property’s investment grade quality.” The subject is located a ½ mile from exit 24 off Interstate 91, the major north-south corridor traversing the region of Western New England. Interstate 91 also provides access to Hartford Hospital located just 10 miles away from the subject off of exit 29A. Hartford Hospital has a medical staff of over 1,000 physicians and dentists, and has been ranked #1 in the Hartford region and among the best in Connecticut for 2013-14 by U.S. News & World Report.