Andalex Group Lands $103M for New Jersey MOB

Andalex Group has secured a $103 million refinancing loan for Sylvan Corporate Center, a 276,000-square-foot medical office campus in Englewood Cliffs, N.J. RXR, Waterfall Asset Management and New York Life Investment Management issued the note.

The recapitalization retires a previous $72 million permanent loan originated by Madison Realty Capital in 2022, according to Yardi Matrix information. The current $103 million note will also fund the 20-year expansion and extension of the campus’ anchor tenant, Englewood Health, at the property.

This renewed lease will double the tenant’s footprint, bringing it to a total of approximately 202,000 square feet. The expansion will comprise a 50,000-square-foot Englewood Hospital Outpatient Imaging and Therapeutics Center and another 50,000-square-foot Englewood Health Physician Network office space.

A metro NYC medical office campus

The medical office campus consists of four three-story buildings at 910-940 Sylvan Ave., with the first two completed in 1988 and the remaining two in 2008. They range between 61,500 and 70,000 square feet in size.

Andalex Group acquired the original two buildings in 2004, from DAICEL Chem Tech, for a total of $28.3 million, the same data provider shows. Four years later, the company developed the two newer buildings.

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The 9-acre campus comprises a fitness center and covered parking areas with a total of 1,170 spots. The campus is just off U.S. Route 9W, which connects the area to Midtown Manhattan, 13 miles south. Additionally, Manhattan’s Hudson Heights and Washington Heights neighborhoods are 6 miles across the Hudson River.

Medical outpatient buildings continue to attract strong investor interest as long-term demographic trends sustain demand, even as the sector’s construction pipeline remains subdued. One of the key drivers of investment in high-quality outpatient facilities is the aging U.S. population, coupled with the ongoing shift toward outpatient care and health-care system consolidation. Limited new development—driven by elevated construction and financing costs—has allowed the medical office sector to maintain healthy occupancy levels, steady rent growth and stable cash flows.