Proscia and Turley of Cronheim Mortgage finance a total of $13.865 million

Janet Proscia and David Turley of Cronheim Mortgage arranged mortgage financing totaling $13.865 million for three N.J. medical office properties. "Lenders like the supply/demand characteristics of the N.J. medical office market," said Turley. "Medical practices have a low failure rate and build their business around a specific location, which makes them sticky tenants. We capitalized on the asset class's appeal to complete several medical office assignments." Cronheim sourced a $3 million permanent loan for several owner-occupied medical office condos in Fair Lawn totaling about 12,200 s/f. Proscia noted that the borrower's previous efforts to finance the property had failed due to property valuation issues. "We were able to secure a bank willing to lean into a leveraged office condo loan. The financing allowed the borrower to cash out some of his value creation and unlock capital for his next deal," said Proscia. Cronheim advised on an acquisition/renovation loan for a 12,600 s/f medical building in downtown New Brunswick proximate to St. Peter's Hospital. The building will be completely renovated to house a cancer center and supporting medical offices. Cronheim worked with a regional bank to complete the financing. Turley said, "Strong sponsorship and an equity stake by St. Peter's Hospital in the cancer center tenant helped overcome concerns around the high price/valuation per s/f and untested nature of the property's anchors." Cronheim secured a $7.4 million, 5-year permanent loan from a N.J. bank for a 31,505 s/f medical office building in Hamilton Township. The rate was locked at 3.25%. The building is 100% occupied and the principals of the primary tenants have an equity stake in the property. "This was a leverage-driven transaction," said Proscia. "We secured an 80% LTV financing offer and were able to negotiate the rate when the appraised value supported a 74% LTV."