May 15, 2018
Pacific Southwest Realty Services closed a $44-million loan secured by four medical office buildings in SoCal. The financing was arranged on behalf of Medicus Property Group, and funded by one of PSRS’ relationship debt funds out of San Francisco.
Following Medicus’ 2013 acquisition of The Garden View Professional Center in Encinitas, CA, the group has added four additional buildings in San Diego, Encinitas, and Temecula. That’s boosted its portfolio to more than 155,000 square feet.
The financing was structured as a re-finance of three of the borrower’s existing properties, in tandem with the acquisition financing for the El Camino in Encinitas. The high-leverage, non-recourse loan had a floating interest rate and a flexible pre-payment structure, which includes a $3,250,000 reserve that the borrower can access for capital expenditures, tenant improvements, and leasing commissions.
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