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Northfield Avenue Medical Office
$12,995,000 Acquisition, CapEx & TI/LC Financing
West Orange, NJ | April 2021
Thorofare Capital has funded a $12.995 million bridge loan for the acquisition, renovation and lease-up of Northfield Avenue Medical Office, which totals 70,000 SF of a to-be-repositioned class A medical office building in West Orange, New Jersey
At the time of loan origination, the distressed property was 16.7%-occupied by a diversified rent roll of medical practitioners. The sponsorship acquired the asset as REO from a bank that foreclosed on the prior owner.
The Property is located 0.75 miles north of Saint Barnabas Medical Center, a 577-bed nonprofit teaching hospital and the oldest and largest non-profit, non-sectarian hospital in New Jersey. This major demand driver creates a natural medical hub in the immediate supply-constrained sub-market.
The submarket is in high demand for Class A medical office space, with virtually no available Class A MOB space within three miles of the hospital and an overall MOB market occupancy of 95%.
The Sponsor’s business plan calls for a complete refurbishment of the Property to include: new exterior cladding and glazing, roof replacement, new HVAC and electrical systems, the addition of a new 3-stop elevator, refurbished common areas and bathrooms, and the addition of a “port cochere” at the rear of the building which will serve as the new entrance and arrival for the Property.
Once the renovations are complete, the Property will be strategically positioned to provide large blocks (25k+ SF) of contiguous Class A medical office space, which is unavailable in the market today (the largest contiguous block available currently is 4,300 SF).
The sponsorship is a joint venture between a Dallas-based healthcare real estate developer and a Chicago-based institutional investment manager.