Press Releases
Marcus & Millichap Capital Corporation Arranges $38 Million Construction Loan and PACE Financing for a Hospital in Southwest Florida
May 06, 2024
DALLAS – May 6, 2024 - Marcus & Millichap Capital Corporation (MMCC), a division of Marcus & Millichap (NYSE: MMI), has arranged $38 million in financing for the construction of a 60-bed inpatient rehabilitation hospital in Bradenton, Florida. The MMCC Capital markets team was led by Dallas-based senior director Kevan McCormack.
McCormack worked on behalf of the co-development team of CROSS Development and Kennor Holdings to secure 80% of the capital stack. The 60% loan-to-cost bank loan was structured at SOFR + 400, floating for two years followed by a three-year mini-perm at SPFR + 340 fixed. The 20% loan-to-cost PACE financing was structured at 8.77% fixed rate with a 30-year amortization and three years of interest only.
The project will be managed by Nobis Rehabilitation Partners, which currently manages 14 hospitals nationwide with another eight in the construction pipeline. This will be the fourth project in Florida that Nobis is managing with the other three hospitals located in Jacksonville, Orlando, and Tampa. The Bradenton development represents the fourth Nobis Rehabilitation Hospital to be built by the co-development team.
“Despite the tumultuous capital markets environment, we were able to create a competitive process and offer multiple bank and PACE financing options,” said McCormack. “This development team is one of the best in the healthcare industry.”
McCormack worked on behalf of the co-development team of CROSS Development and Kennor Holdings to secure 80% of the capital stack. The 60% loan-to-cost bank loan was structured at SOFR + 400, floating for two years followed by a three-year mini-perm at SPFR + 340 fixed. The 20% loan-to-cost PACE financing was structured at 8.77% fixed rate with a 30-year amortization and three years of interest only.
The project will be managed by Nobis Rehabilitation Partners, which currently manages 14 hospitals nationwide with another eight in the construction pipeline. This will be the fourth project in Florida that Nobis is managing with the other three hospitals located in Jacksonville, Orlando, and Tampa. The Bradenton development represents the fourth Nobis Rehabilitation Hospital to be built by the co-development team.
“Despite the tumultuous capital markets environment, we were able to create a competitive process and offer multiple bank and PACE financing options,” said McCormack. “This development team is one of the best in the healthcare industry.”
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About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.
