$42MM Southern CA Hospital
- Total financing of $42MM across four properties
- LTV of 14%
- 25 years fixed
- Capitalized interest reserve for two years
25 Years Fixed
The Office of Statewide Health Planning and Development (OSHPD), instituted guidelines that required several Hospitals owned by a national REIT to undergo seismic retrofits prior to January 2030. The hospitals also had planned HVAC and electrical upgrades.
Rather than entering into a short term loan for the improvements, the owner used PACE financing which allowed them to amortize the cost of the improvements over a 25 year term.