55,246-square-foot, six story medical office adjacent to a hospital
West Hills, CA
PSRS closed an $11‐million‐dollar loan for Oak Hills Medical Plaza in West Hills, CA. Originally built in 1985, the 55,246-square-foot center is home to 21 medical-related tenants and is conveniently located adjacent to West Hills Hospital, providing a nice advantage for doctors who visit patients at the hospital. PSRS arranged a cash‐out refinance of an existing CMBS loan, on a 10‐year interest-only basis.
The cash‐out financing will allow the borrower to perform anticipated upgrades to the property, such as a new lobby and bathrooms, without dipping into cash reserves. PSRS Kostas Kavayiotidis leveraged his lender relationship to increase loan proceeds while maintaining the interest-only nature of the loan. The borrower was a referral from an existing client.
In general, the healthcare field is very attractive its a blue chip. So, irrespective of any legislation, medical‐related tenants are staying strong just by virtue of the location of the building and their client base and demand. Specifically any time you have a medical office building across from a hospital, that is a good thing.