Financing for medical office buildings across Metro Atlanta, from the hospital corridors in Sandy Springs and Midtown to the outpatient buildings going up in Alpharetta, Marietta, and Gwinnett. Medical tenants stay for years, and the loan is built to reflect that.
A medical office building isn't general office. A dental practice, a dialysis clinic, or an outpatient surgery group spends heavily on plumbing, imaging rooms, and build-out, and it doesn't pick up and move when the lease ends. Patients know where to find them, and referring physicians are down the hall or across the street at the hospital. That's why medical tenants renew at rates general office tenants don't, and why the right lender treats a medical office building very differently from an office building downtown.
Metro Atlanta is one of the strongest medical office markets in the Southeast, anchored by Northside, Emory, Piedmont, Wellstar, and Children's. Most banks finance medical office on a 20 or 25 year amortization and ask you to move your operating accounts as part of the deal. Here, larger loans can run on a 30 year amortization, which lowers the payment on the same loan amount, with up to 60 months of interest-only at the start. A deposit relationship is not usually required, and some loans of $1 million and up have no prepayment penalty at all. Fixed rates compete with what banks and life insurance companies offer on the same building, and part of our job is matching the term to how long your tenants are signed for.
On Metro Atlanta medical office buildings, loan amounts typically range from $500,000 to $30 million. Larger loans typically run from 50% to 67% of value, and smaller loans can reach 75%.
These are typical ranges, not a quote. Your rate and loan amount depend on the building, the tenants, your credit, and the market.
These are typical terms. Yours depend on the building, the tenant mix, lease terms, and the structure you choose.
The medical corridor around Northside, Emory Saint Joseph's, and Children's Scottish Rite, one of the densest concentrations of medical office in the Southeast.
Buildings serving Emory University Hospital, Emory Midtown, and the practices around them.
Medical office near Piedmont Atlanta along the Peachtree corridor.
Buildings near Wellstar Kennestone and the outpatient growth around it.
North Fulton and Forsyth, where outpatient and specialty practices have followed the population north.
Medical office around Northside Gwinnett and one of the fastest-growing counties in the metro.
The building: A multi-tenant medical office building in Metro Atlanta, acquired for roughly $14 million, leased to physician and outpatient tenants with years of lease term remaining.
The structure: About $9.3 million, 65% of value, on a 7 year fixed term with a 25 year amortization.
Interest-only: The first 24 months, which kept the payment low while the new owner settled the tenant roster.
Why it worked: Medical tenants on long leases and a location near a major hospital campus supported a 7 year term and an interest-only start.
Representative of recent medical office financings in Metro Atlanta. Figures are rounded and the property is not identified.
For investors who own medical office, and practices that own their buildings through a separate company.
A longer fixed term and an interest-only start keep the first years of ownership simple.
Refinance into a 5, 7, or 10 year term that matches your tenants' leases.
Atlanta medical office values have grown with the metro. Put the equity back to work.
Leased to your practice, financed on the lease.
The address, the tenants, and what you want the loan to do. A rent roll and the leases are all it takes to start.
The loan amount, the term, the interest-only period, and what it takes to close, before you pay for an appraisal.
Appraisal, environmental, title, and insurance get ordered and kept on schedule. You always know what's left before closing.
Loan documents signed and the loan funded on your closing date.
Acquisition, refinance, or cash out. Send the rent roll and the leases, and we'll come back with terms.
