Equity Lands Refi for 146 KSF Texas Panhandle MOB
Newmark Healthcare Capital Markets has arranged $12.5 million in refinancing for 3501 MedCenter, a 146,000-square-foot medical office building in Amarillo, Texas. Regional lender East West Bank provided the note to the borrower, Equity, according to CommercialEdge information.
The firm had purchased the asset in November 2020 from McCartt & Associates, the same source shows. The deal involved a $13.4 million loan from Franklin BSP Realty Trust.
The single-story facility came online in 1986 and was 87 percent leased at the time of the current transaction. The tenant roster includes Spine & Sports Wellness Clinic, Lonestar Dental Center, Amarillo Gastroenterology and Northwest Texas Healthcare System.
READ ALSO: Getting in the Heads of MOB Tenants
Located at 3501 S. Soncy Road, the more than 11-acre property is some 15 miles from the Rick Husband Amarillo International Airport. Other medical providers in the area include Harrington Regional Med Center, Northwest Texas Healthcare System and Amarillo VA Health Care System.
Newmark Senior Managing Directors John Nero and Michael Greeley, Executive Managing Directors Jay Miele and Ben Appel, together with Associate Conor Hilton and Associate Directors Ron Ott and Chad Prescher, arranged the deal.
MOB sector poised for growth
The medical office real estate market continues to thrive. A Savills report predicts a 26 percent increase in outpatient demand over the next 10 years, with growth driven by the aging population. Despite challenges in the commercial real estate sector due to economic uncertainty, outpatient facilities remain highly sought-after.
Favorable economic factors, such as interest rate reductions, are expected to boost investment in medical office properties. However, the demand for these facilities is putting pressure on the medical labor market, which is already experiencing a shortage of specialists, particularly physicians and nursing staff.
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