1. Loan Purpose: Medical and healthcare real estate loans are exclusively used for commercial real estate transactions related to healthcare facilities, such as:
- Medical Office Buildings (MOBs): Financing the purchase or development of office buildings that house medical practices and healthcare services.
- Clinics and Outpatient Centers: Funding the acquisition or construction of clinics and outpatient facilities.
- Healthcare Facilities: Supporting the development or renovation of larger healthcare facilities, such as hospitals and specialty treatment centers.
2. Loan Amounts: Typical loan amounts for medical and healthcare real estate loans can vary significantly depending on the specific property, its location, and the borrower’s financial qualifications:
- Medical Office Buildings: Loans for MOBs may range from $1 million to $20 million or more, depending on the size and location of the building.
- Clinics and Outpatient Centers: Loans for smaller clinics may start at $500,000 and go up to several million dollars.
- Healthcare Facilities: Financing for larger healthcare facilities, including hospitals, can reach tens of millions or more, depending on the project’s scale.
3. Loan Terms: The terms for medical and healthcare real estate loans can vary but typically range from:
- Intermediate-Term: With terms of three to seven years, these are suitable for smaller projects like clinics or smaller MOBs.
- Long-Term: Long-term loans may have terms ranging from seven to 25 years and are used for more significant projects like hospitals or larger MOBs.
4. Collateral and Personal Guarantees: Lenders often require the healthcare property itself as collateral, and personal guarantees from the business owner or partners may be needed.
5. Interest Rates: Interest rates can be fixed or variable, depending on the lender and the specific loan agreement.
Medical and healthcare real estate loans are essential for healthcare providers looking to secure suitable properties to offer their services effectively. The loan terms and amounts are highly dependent on the nature and size of the commercial healthcare property in question. To explore medical and healthcare real estate financing and determine the most suitable loan for your specific property needs, please contact Obelisco Advisers experts for tailored guidance and support.