Marcus & Millichap Capital Corporation (MMCC), a division of Marcus & Millichap (NYSE: MMI), has arranged $38 million in financing for the construction of a 60-bed inpatient rehabilitation hospital in Bradenton, Florida. The MMCC Capital Markets team was led by Dallas-based Senior Director Kevan McCormack.
McCormack worked on behalf of the co-development team of CROSS Development and Kennor Holdings to secure 80% of the capital stack. The 60% loan-to-cost bank loan was structured at SOFR + 400, floating for two years followed by a three-year mini-perm at SPFR + 340 fixed. The 20% loan-to-cost PACE financing was structured at an 8.77% fixed rate with a 30-year amortization and three years of interest only.
The project will be managed by Nobis Rehabilitation Partners, which currently manages 14 hospitals nationwide with another eight in the construction pipeline. This will be the fourth project in Florida that Nobis is managing with the other three hospitals located in Jacksonville, Orlando, and Tampa. The Bradenton development represents the fourth Nobis Rehabilitation Hospital to be built by the co-development team.
“Despite the tumultuous capital markets environment, we were able to create a competitive process and offer multiple bank and PACE financing options,” said McCormack. “This development team is one of the best in the healthcare industry.”
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2023, MMCC closed 1,076 transactions totaling $6.7 billion. To learn more, please visit: marcusmillichap.com/financing
