NEW JERSEY (July 19, 2016) – Gregory Nalbandian, managing director of NorthMarq Capital’s New Jersey-based regional office, arranged $91.5 million in refinancing for a best in-class, 13 property medical office portfolio, of which eleven assets are located in exceptional, high-demographic, in-fill markets throughout Northern New Jersey. The remaining assets are located in New York and Florida. Working exclusively for Regent Medical Properties, LLC, a rapidly growing full service medical owner-operator based in Northern New Jersey, the five-year fixed-rate loan was bifurcated between an $81.5 million senior loan placed with Natixis Real Estate Capital and a $10 million mezzanine loan placed with Morrison Street Capital.
The Regent Medical Portfolio is a 353,000 sq. ft. core medical office portfolio with several of the buildings having on-site surgery centers and within close proximity to major hospitals. Moreover, the portfolio is highly specialized since approximately half of the tenancy is borrower affiliated. “This unique attribute, combined with this refinancing representing a substantial loan basis of $260 per square foot for a suburban office portfolio (which included a sizable cash-out), proved challenging for many lenders”, explained Nalbandian. “Natixis Real Estate Capital and Morrison Street Capital worked diligently to understand the value in this prestigious portfolio and invested significant time and resources to understand Regent’s affiliated tenant.”
Chief Investment Officer for Regent Medical Properties, Barton Schack, noted how the portfolio has grown organically over the past fifteen years from a single condo unit to its current size through the efforts of its owner, Dr. John Hajjar of Sovereign Health System. “The refinancing with Natixis and Morrison Street marks a significant first step in transitioning Regent from local and regional lenders to more institutional capital providers”, said Schack. “Based upon our growth projections, we required this refinancing to further expand our portfolio while also providing for short term flexibility as we continue to evaluate and execute on our strategic options during the next five years.”