Medical Office Building Loans

Suburban and urban office buildings, professional and medical office buildings. Single tenant office properties or 51% owner-occupied with long-term leases located in strong markets are also eligible for this program.

$250,000 - $2,000,000

Nationwide

15, 20, 25 Years

First lien position as certified by title insurance policy on property. Collateral assignment required; subordination of tenant leases may be required.

Determined by pricing matrix.

Minimum DSCR of 1:1 depending upon property type, age, physical condition, location, and competitive market position.

Up to 80% of MAI appraised value conforming to FIRREA.

Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership; maximum LTV 80%.

The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance. The borrower may also be required to establish a monthly capital replacement escrow reserve equal to the greater of (a) 5% of gross revenues or (b) an amount to be determined on the basis of an engineering report and site inspection.

Complete Summary Appraisal required.

Required.

Updated survey required unless title company agrees to delete the standard exceptions from the title policy.

The borrower shall establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the environmental and architectural/engineering reports.

U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions); majority principal owners cannot be on probation or parole.

Must be personally guaranteed by all 20% or greater owners of real estate or operating entity.