Red Oak provided $3,000,000 to refinance and rehabilitate a 32,000-square-foot medical office building in Southfield Michigan. The property at 26250 Northwestern Highway was purchased by a medical company for their partial use. The facility had undergone some internal rehabilitation already and had a stable existing operational history.
The purpose of this loan was to refinance existing debt and provide funds to complete the renovations of the remaining office suites. The high visibility asset is located in Metro Detroit on a major highway intersection of U.S. 10 and I-696 and is surrounded by complementary properties.
The property is a two-story building, consisting of six suites of approximately 4,700 square feet each. The borrower currently occupies approximately half of the building and has LOI’s for the rest of the office space. Once the rehabilitation is completed and the new tenants are in, the borrower plans to refinance the loan with a conventional lender.