OC Medical Office

Transaction description

Michael Thorp and Sterling McGregor of PSRS arranged a $7.5 million non-recourse refinance for a 36,000-square-foot medical office building in Orange County, California. Situated within a primary regional healthcare corridor near major hospital systems and biotech hubs, the two-story facility is 100% leased to an exclusively healthcare-oriented tenant roster, with several key practice groups operating in the building for over a decade. The borrower has successfully owned and operated the asset for nearly 20 years.

Structured at a 50% loan-to-value (LTV) ratio, the financing features a five-year term, a 25-year amortization schedule, and 12 months of interest-only payments. The standout feature of the transaction was securing a completely open structure with zero prepayment penalty throughout the entire loan term, delivering maximum operational and exit flexibility at a market-leading spread.

“Medical office continues to be one of the most resilient property types we finance,” said Mike Thorp, Principal at PSRS. “This building had everything a lender wants to see: a history of full occupancy, a tenant base tied directly to healthcare demand, and a borrower who has owned and operated the asset for nearly two decades. That track record is what allowed us to secure the non-recourse, zero prepayment penalty deal at a market-leading spread.”