May 9, 2019
Marcus & Millichap Capital Corp. (MMCC) has arranged a $15-million non-recourse loan to acquire an 80,000-square-foot medical facility in Hiawatha, IA, within the Cedar Rapids metro area. Buyer and seller were not disclosed.
Located at 1195 Boyson Rd. in Hiawatha, the property has a 20-year triple-net lease with Mercy Medical Center and a 14-year lease with Wolfe Eye Clinic.
“The property is a brand-new medical facility with investment-grade tenants and long-term leases,” said Robert Bhat, first VP capital markets with MMCC. “We secured five years of interest only, followed by a 30-year amortization at 70% loan-to-value. The borrower’s all-in rate is 4.58%, fixed for 10 years.”
Wolfe Eye Clinic moved its Cedar Rapids location to Hiawatha in 2017. Mercy’s Hiawatha facility houses outpatient surgery and urgent care operations.
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