NEW JERSEY (February 9, 2015) – Gregory Nalbandian, managing director of NorthMarq Capital’s New Jersey office, arranged a $16.5 million refinancing for the New Jersey Health Care Center, a 75,000 sq.ft. medical office building located at 680 Kinderkamack Road in Oradell, New Jersey, less than 2.5 miles away from the Hackensack University Medical Center at Pascack Valley. The transaction was structured with a 10-year term and 30-year amortization at a very aggressive interest rate and represents a full cash-out refinance less than a year after acquiring the property. NorthMarq arranged the financing through its correspondent relationship with Sentinel Investments.
“Our client, a very successful physician who has acquired a substantial medical office portfolio over the past several years, purchased this asset from a local bank who had foreclosed on the property after the occupancy plummeted to 54 percent,” said Nalbandian. “Through hands on management and their extensive reach within the medical community, the sponsor created significant leasing momentum at the property. Within the first six months of ownership, the property was stabilized at over 90 percent occupancy. Sentinel understood the story and that this building is the top medical building in this sub-market, boasting an on-site surgery center. Consequently, Sentinel provided a full 75 percent LTV, which represented a loan well above $200/sf, enabling our client to cash out his equity through this substantial value creation.”