Northmarq Capital Arranges $91.5 Million Refinance For Medical Office Portfolio

Greg Nalbandian of Northmarq and one of the medical properties in the portfolio.

FAIRLAWN AND HACKENSACK, NJ— NorthMarq Capital’s New Jersey-based regional office, arranged $91.5 million in refinancing for a 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 , 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. Here’s a list of the properties sold in the transaction: New Jersey 14-01 Broadway, Fairlawn, NJ 15-01 Broadway, Fairlawn, NJ 555 Kinderkamack Road, Oradell, NJ 630 Broad Street, Carlstadt, NJ 20 Woodridge Avenue, Hackensack, NJ 403-405 West Pleasantview Avenue, Hackensack, NJ 631 Grand Street, Jersey City, NJ 85 Harristown Road, Glen Rock, NJ 234 Hamburg Turnpike, Wayne, NJ 556 Eagle Rock Avenue, Roseland, NJ 215 Easton Avenue, New Brunswick, NJ New York 103-105 South Bedford Road, Mount Kisco, NY Florida 14601 SW 29th Street, Miramar, FL “This portfolio is extremely unique in that nearly half of the tenancy is borrower affiliated,” says Nalbandian . “Given this reality combined with the fact that this financing represents 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. Natixis and Morrison Street did a terrific job in working to understand the value created in the portfolio but, even more impressive, they invested significant time and resources to truly understand the dynamics of Regent’s affiliated tenant.” Barton Schack, chief investment officer for Regent Medical Properties , 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”, says 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.”