The Deal
Commercial Lending Solutions arranged a $12.3M permanent loan for a nnn medical clinic in Scottsdale, AZ. The property was 100% occupied by an established healthcare operator under an absolute triple-net lease with no landlord maintenance obligations. The tenant carried investment-grade credit ratings from a major ratings agency, and the lease featured annual rent escalations tied to CPI with a fixed floor, providing inflation protection alongside downside income security for the long-term investor.
The Challenge
While the tenant's investment-grade credit quality made the asset fundamentally strong, healthcare real estate requires specialty underwriting knowledge that most community and regional banks lack. Lenders unfamiliar with healthcare operators often required extensive operator financial review, resulting in timeline delays and inconsistent credit decisions. The borrower had received conflicting feedback from three separate banks, each citing different concerns about healthcare credit assessment, occupancy concentration risk, and license transferability, none of which presented actual underwriting problems for a lender with sector expertise.
The Solution
Trevor Damyan at Commercial Lending Solutions sourced a life insurance company lender with an active healthcare real estate portfolio and established underwriting criteria for investment-grade medical tenants. The loan was structured at 60% LTV with a 30-year amortization and a 10-year fixed rate, reflecting the life company's preference for long-term, low-risk income assets. The lender's in-house healthcare credit team completed its review efficiently, confirming the tenant's financial strength and the lease structure's compatibility with its lending program requirements.
The Outcome
The financing closed at one of the best fixed rates available in the market at that time, reflecting the life company's appetite for investment-grade single-tenant healthcare real estate. The 10-year fixed term aligned perfectly with the investor's hold strategy, eliminating interest rate risk for a full decade. The 30-year amortization produced strong debt service coverage and preserved monthly cash flow. The borrower retained the asset as a core fixed-income holding in their portfolio, benefiting from predictable lease income and the certainty of long-term institutional financing.