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CLARKSTON, MI-In its first deal with Houston, TX-based Holliday Fenoglio Fowler LP, Mid-Oakland Medical Center LLC, which owns and operates the 105,000-sf, three-story, Mid-Oakland Medical Center, has obtained a $14 million refinancing loan to pay off a mini-permanent loan the center had on its books.
Jon Wood, director with Holliday Fenoglio 's Indianapolis office, arranged the refi through JP Morgan Mortgage Capital Inc., a St. Louis-based conduit lender. The 10-year loan is at a fixed interest rate of 5.31%, starting out as three-year interest-only, then amortizing over a 30-year period.
The property, located at 6770 Dixie Hwy. and constructed in 1998, is 100% leased. Tenants include St. Joseph Mercy Hospital Systems, Clarkston Medical Group, the Michigan Institute of Radiation Oncology (MIRO Cancer Centers), NOVA Care Rehabilitation Center, Davita Dialysis and private physician practices.
Wood tells GlobeSt.com that the loan was somewhat difficult to place, due to sudden changes among the borrower's partnership. "When we started, this was a simple refi," he notes, adding that certain things had surfaced during the loan application process, including the sale of interest in the asset to an outside investor group by one member of the partnership.
Ultimately, the loan will benefit the community as, "Mid-Oakland Medical Center is Northern Oakland County's focal point for healthcare providers," Wood says.
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