The Deal
Commercial Lending Solutions arranged a $42M permanent loan for a corporate headquarters campus in Houston, TX. The property was anchored by a regional healthcare system occupying a majority of the rentable square footage under a long-term lease, with the remaining space leased to independent medical practices providing complementary specialties. The healthcare anchor had operated at this location for over a decade with strong patient volume and no announced plans to consolidate. The borrower was refinancing maturing debt and sought long-term fixed-rate institutional financing.
The Challenge
The healthcare system anchor's lease had approximately 26 months remaining on its base term at the time of loan application, which placed the lease expiration inside the proposed loan term. Most lenders require anchor leases to extend beyond the loan maturity date and were unwilling to proceed until the anchor executed a formal renewal. The healthcare system's internal real estate decision cycle typically ran 12 to 18 months for lease renewals, creating a timing mismatch that threatened to delay financing well past the borrower's maturity date.
The Solution
Trevor Damyan at Commercial Lending Solutions structured a parallel track in which the lease renewal negotiation and the loan application proceeded simultaneously. The selected lender, a regional bank with an established medical real estate platform, was comfortable underwriting the deal contingent on lease renewal execution before closing. Commercial Lending Solutions coordinated with the borrower's leasing counsel and the healthcare system's real estate team to accelerate the renewal timeline, using the pending loan commitment as leverage to move the healthcare system's internal approval process forward more quickly than normal.
The Outcome
The lease renewal and the loan closed simultaneously, with the healthcare system executing a new 10-year lease extension the same week as the loan funding. The lender's willingness to underwrite the deal on a contingent basis and work with the timeline eliminated what would otherwise have been a 12-plus month delay in securing permanent financing. The borrower replaced maturing debt with long-term fixed-rate institutional financing at competitive terms, and the renewed anchor lease meaningfully increased the property's market value. The deal illustrated how active coordination between financing and leasing can compress timelines and unlock institutional capital for medical real estate.