Metropolitan Capital Advisors, Ltd. (MCA) has closed long-term debt financing for two separate office buildings leased to government service tenants.
Lincoln Plaza, a 154,085 SF single-tenant office building located in Oklahoma City, Oklahoma, is 100% leased to Oklahoma Healthcare Authority (“OHCA”). OHCA is an agency of the State of Oklahoma and is responsible for providing health insurance benefits for the state’s SoonerCare (Oklahoma Medicaid) members. The Authority is the state-level counterpart to the federal Center for Medicare and Medicaid Services.
The Client/Borrower purchased the vacant property out of foreclosure in 2011, secured a Lease Agreement with OHCA in 2012, and commenced the redevelopment project in 2013. MCA secured a non-recourse fixed-rate loan in the amount of $18,120,000, which equated to 70% LTV. The rate was fixed at 5.06% and carried a 30-year amortization. The loan proceeds were used to pay off the existing recourse bridge financing and return a portion of the equity to the Sponsor.
Lincoln Plaza is located at 4345 N. Lincoln Boulevard on the northwest corner of N. Lincoln Boulevard and NE 42nd Street, less than four miles northeast of Downtown Oklahoma City. The property is positioned on the N. Lincoln Boulevard corridor in close proximity to both the Oklahoma State Capitol (1.5 miles from Subject Property) and the Oklahoma City Medical District (2.5 miles from Subject Property). The Subject Property is in close proximity to the I-44/I-235 interchange, making it easily accessible from any area within the city.
Veterans Administration Building, a 9,713 SF office building located in Vinita, Oklahoma, is 100% leased to the Veterans Administration (“VA”) clinic, a division of the Government Services Agencies (“GSA”), which has approximately five years remaining on its lease. The building was financed with a regional bank that supplied an 80% Loan–to-Cost mortgage that equated to $1,780,000 with a small hold back for future Tenant Improvement and Leasing Commissions. The 5-year term loan carried an interest rate of 4.25% fixed with a 25-year amortization.
Since 1992, Metropolitan Capital Advisors has closed in excess of $9.3 billion of debt and equity transactions. National Real Estate Investor Magazine has consistently ranked MCA as one of the top CRE Financial Intermediaries in the US. MCA has already closed over $300 million of commercial real estate financing during 2014.