$42MM Southern CA Hospital

Transaction Highlights

  • Total financing of $42MM across four properties
  • LTV of 14%
  • 25 years fixed
  • Non-recourse
  • Capitalized interest reserve for two years
c-pace

$42.5MM

LTV:

14%

Type

Retrofit

Building:

Hospital

TErm:

25 Years Fixed

Status:

Closed

Project Description

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.