Inland Mortgage Capital, LLC (“IMC”) is pleased to announce the closing of a $4,825,000 non-recourse bridge loan for the acquisition of a two-story medical office in Douglasville, GA.
At the time of closing, the property was 92% occupied by four tenants (three of which are medical). The largest tenant is a non-medical user and has a lease that was rolling during the term of the loan. In addition, the Sponsor had been involved in some recent litigation, and the transaction needed to be closed in a relatively short period of time.
IMC became comfortable with the strong submarket occupancy and significant population growth in the area. The property was located near a major hospital, and the demand for medical office was readily apparent, as evidenced by new construction of medical offices, senior living facilities and other auxiliary uses. In addition, the major tenant had recently expanded its space in the building, funding most of the tenant improvements itself.
In order to facilitate the deal, IMC agreed to utilize the existing cash flow to create a leasing reserve for the potential vacancy of the largest tenant. The Borrower intends to refinance the loan with permanent financing upon solidifying more term with the largest tenant. The fact that the loan has no prepayment protection was a key provision for the Borrower in their decision to go with IMC.
