By Peter Fabris, Contributing Editor<\/p>\n
G&L Realty Corp. closed Nov. 12 on the $263.5 million refinancing of two medical office portfolios in southern California totaling more than 428,000 square feet. US Bank provided $176.5 million in financing for five medical office and retail properties in the Golden Triangle district of Beverly Hills.<\/p>\n
The loan offers a future funding facility that would increase the total amount to $200 million. US Bank also provided Beverley Hills-based G&L with a $63.5 million loan for a portfolio of three medical office buildings in other major Southern California submarkets.<\/p>\n
\u201cWe think the portfolio has great upside potential and should continue to benefit from healthy market fundamentals for medical offices,\u201d said Scott McPherson, senior vice president, marketing manager, US Bank, based in Newport Beach, Calif., in a press release.<\/p>\n
In an interview with CPE on Tuesday, McPherson added, \u201cG&L has excellent financial capacity relative to the portfolio. Our relationship goes back two decades.\u201d<\/p>\n
The Beverly Hills portfolio features five assets totaling 233,980 square feet located less than three miles from two of the region\u2019s leading hospitals: Cedars-Sinai Medical Center and UCLA Medical Center. \u201cBeverly Hills has some of the highest-end plastic surgeons and dermatologists in the country,\u201d McPherson said. \u201cOnce established, those physicians generally don\u2019t want to move their practices.\u201d<\/p>\n
The three other properties financed by U.S. Bank are in Sherman Oaks, Santa Clarita and La Jolla, all affluent areas near hospitals. That makes the fundamentals of the total deal attractive, McPherson explained. \u201cThere\u2019s always an appetite for well located, stable medical office facilities,\u201d he noted.<\/p>\n
The medical facility market seems to be heating up as the economy is improving, McPherson said. \u201cThe lending market is getting better and better, with other lenders including CMBS shops coming into the market,\u201d McPherson said. \u201cI think there will be more capital available in the future.\u201d<\/p>\n
Nevertheless, investors will continue to regard new development cautiously. \u201cLenders will still be leery of speculative medical office projects,\u201d he said. \u201cNew facilities will need solid pre-leasing deals.\u201d<\/p>\n
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US Bank provided Beverly Hills-based G&L with $176.5 million in financing for five medical office and retail properties in the Golden Triangle district of Beverly Hills, plus a $63.5 million loan for a portfolio of three medical office buildings in other major Southern California submarkets.<\/p>\n","protected":false},"author":1640,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,21783,1594,21754,21742,15],"tags":[],"class_list":["post-1004086805","post","type-post","status-publish","format-standard","hentry","category-finance","category-investment","category-los-angeles","category-medical-office","category-latest","category-west"],"acf":[],"yoast_head":"\n