Dealmaker: NorthMarq Capital Arranges $92M for Medical Office Portfolio

NorthMarq Capital, Minneapolis, arranged $91.5 million to refinance a 13-property medical office portfolio.

NorthMarq Managing Director Gregory Nalbandian worked exclusively for Regent Medical Properties LLC, Trenton, N.J., to refinance 353,000-square-foot core medical office portfolio.

Nalbandian secured five-year fixed-rate financing, bifurcated between an $81.5 million senior loan from Natixis Real Estate Capital, New York, and a $10 million mezzanine loan from Morrison Street Capital, Portland, Ore.

Nalbandian said half of the tenancy is affiliated with Regent Medical Properties. “This unique attribute, combined with this refinancing representing a substantial loan basis of $260 per square foot for a suburban office portfolio that included a sizable cash-out, proved challenging for many lenders,” he said. But he noted that Natixis and Morrison Street understood Regent’s affiliated tenant relationship and funded the loan.

“The refinancing with Natixis and Morrison Street marks a significant first step in transitioning Regent from local and regional lenders to more institutional capital providers,”  said Regent Medical Properties Chief Investment Officer Barton Schack. “Based upon our growth projections, we required this refinancing to further expand our portfolio while also providing for short-term flexibility.”

In Danbury, Conn., NorthMarq Capital arranged $20 million to refinance North Street Shopping Center, a 212,500-square-foot retail property.

NorthMarq Senior Vice President and Managing Director Robert Ranieri structured the life insurance company loan with a 10-year term and 25-year amortization schedule.The property’s major tenants include ShopRite and Burlington Coat Factory.

“This was a refinance of a maturing commercial mortgage-backed securities loan,” Ranieri said. “The borrower was able to lower the interest rate and eliminate all escrows except taxes by refinancing with a portfolio lender.”