Bayview PACE provided $42,000,000 of PACE financing for four Hospitals in Southern CA

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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.

Pace In Action

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.

  • Total financing of $42MM across four properties
  • LTV of 14%
  • Rate below 6% for 25 years fixed
  • Non-recourse
  • Capitalized interest reserve for two years