VA National Portfolio: Veteran Health Care Facilities

Facility Highlights

  • Combined Build-to-Suit construction-to-perm financing of $175 million
  • Largest healthcare association in the world
  • Five health care facilities in four different states totaling 303,334 SF
  • SVN|Angelic worked with developer for   several years on these projects before they were individually awarded

Transaction Summary

  • SVN|Angelic has financed and/or sold 10 different projects for this developer valued at over $400 million
  • SVN|Angelic structured and placed financing of these five properties in a way that generated in excess of 100% of the project costs (excess became additional contingency released to developer at completion without restriction)
  • At completion, each property’s loan separates and runs for 20 years as permanent financing in conjunction with the terms of the lease, and has a balloon payment at maturity
  • Included in the $175 million financing was over $27.5 million for TI construction, to be paid back by the tenant at lease commencement and separated from the perm loan
  • Upon completion of construction, SVN|Angelic will sell the properties individually or as a portfolio

Key Benefits

  • SVN|Angelic financed all project costs and development fees, plus roughly $10 million of contingency which will go to the developer when the projects are completed
  • Future buyer will benefit from significant tax advantages  because of the structure of the financing
  • At the end of the lease term, buyers will own each property with a minimal amount of outstanding loan to pay off