Bethesda, Maryland – October 27, 2016
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today it arranged an $8,000,000 refinance loan for Brawley Medical Office, a two-building, 47,138 square foot property located in Brawley, California. This Class-B medical office accommodates the growing number of physician’s groups in the local area.
The loan refinanced an existing conduit loan and provided additional capital to acquire the leasehold land owned by the nearby hospital, on which one of the two medical buildings resides. This transaction was structured with a seven-year fixed rate term, followed by a 30-year amortization schedule, and a debt service coverage ratio of 1.8x.
Geoffrey Arrobio, senior vice president in the Company’s Los Angeles, California office, led the team. Mr. Arrobio commented, “The project included a couple of moving pieces; first, half of the property resided on a ground lease. The borrower executed his purchase option to acquire the leasehold land under the recently built second medical office building. Walker & Dunlop provided a loan that allowed the borrower to acquire the leasehold from the hospital that owned the land; in addition, the new financing paid off the remaining balance of a conduit loan that had come due.”
Located near the Salton Sea in Southern California, the Brawley Medical Office buildings were built in 1997 and 2014, each averaging roughly 23,000 square feet. The property is situated directly across the street from the non-profit regional hospital known as Pioneers Memorial Health and consists of 14 tenants, which are predominately physician groups in the Pioneer Memorial Health system.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.