Pacific Southwest Realty Services Closes $44M SoCal Financing Deal
The high-leverage, non-recourse loan has a floating interest rate and a flexible prepayment structure which includes a $3.2 million reserve.
By Alex Ciorogar
Pacific Southwest Realty Services (PSRS) has closed a $44 million loan for four medical office buildings in Southern California on behalf of Medicus Property Group, an owner and operator of health-care facilities and medical practices. Based in San Diego, PSRS Vice President David Hamilton arranged the negotiations.
The financing was structured to refinance three of the borrower’s properties in San Diego and Temecula, Calif., and to acquire El Camino in Encinitas, Calif. The high-leverage, non-recourse loan has a floating interest rate and a flexible prepayment structure which includes a $3.2 million reserve that the borrower can access for capital expenditures, tenant improvements and leasing commissions.
“Success in mortgage banking comes slowly and requires patience. In the case of Medicus, my initial focus was simply to provide value and establish trust, allowing the relationship to grow stronger over time,” said Hamilton in prepared remarks.
In November 2017, Pacific Southwest Realty Services arranged financing for Madison Marketplace, a 258,981-square-foot shopping center in Fair Oaks, Calif., bought by NewMark Merrill Cos. The financing was structured as a 10-year fixed-rate loan provided by John Hancock Insurance.
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