Hill Cos. Lands $48M for Denver MOB
The facility came online in 2021.
The Hill Cos. has obtained $48 million in refinancing for Synergy Medical Center, a 104,000-square-foot medical office building in Englewood, Colo., a Denver submarket. Värde Partners originated the three-year, floating-rate loan in a deal brokered by Newmark.
Previous financing includes a $45.2 million note, issued by CBRE Capital Markets in September 2022, that matured this year, according to Yardi Matrix information.
HCA HealthOne is the building’s largest tenant. The firm operates an ambulatory center and also provides neurosurgery, orthopedics and physical therapy services. The property was 80 percent leased at the time of closing, underscoring some of the current medical office real estate trends.
READ ALSO: Why MOBs Are Still a Strong Bet for Investors
Synergy Medical Center rises five stories at 500 E. Hampden Ave., within the Swedish Medical Center campus. Completed in 2021, the facility has 14,000 square feet of first-floor retail space and an attached garage with 325 parking spaces. Other services at the mid-rise include primary care, cardiology and plastic surgery.
The medical office building is within walking distance of the city center. Downtown Denver is 7 miles away, while Denver International Airport is 26 miles northeast. Other medical providers in the area include Forefront Dermatology and AdventHealth Porter hospital.
Newmark Executive Vice Chair Ramsey Daya, Executive Managing Director Chris Moritz and Senior Financial Analyst Grant Gooding arranged the loan.
MOB originations drop quarter-over-quarter
The sector saw a 43 percent year-over-year drop in loan originations, according to a third-quarter report from the Mortgage Bankers Association. However, originations slipped only 6 percent on a quarter-over-quarter basis.
In August, Montecito Medical Real Estate landed a $65.9 million loan for Murfreesboro Medical Clinic. The company will use the note from Capital One to refinance the 221,000-square-foot medical building in Murfreesboro, Tenn.
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