Red Oak delivered $3,800,000 in financing for the purchase of an existing Class A, three-story medical office building in a business park located in Pembroke, NC, which is southeast of Charlotte, NC. The sponsor is experienced with a solid track record and negotiated a below-market sale with the seller. The suburban property at 201 East Livermore Dr., Pembroke, is licensed for medical offices, and has several pending leases subject to the new ownership.
The high visibility building is a Class A structure, but Red Oak retained six months of prepayment reserves for future tenant improvements, carpet and paint for the facility as needed. Additionally, six-months of prepaid interest were retained. The transaction required SBA approval and was executed with a very low LTV. The borrower’s exit strategy is to refinance once fully operational and leased up, in approximately six months.