VIZZDA—August 20th, 2013 — In a two-property transaction that totaled over $13m, Stephen Mouldin of CNL Financial Group acquired ground leases for the John C Lincoln Medical Plaza and the North Mountain Medical Plaza in the vicinity of the John C Lincoln Hospital in North Phoenix. The seller was a co-venture between Montecito Medical Operating Company and Harrison Street Real Estate, represented by Montecito’s Vice-President, Roger S Williams.
John C Lincoln Medical Plaza is a 51,097ft2 complex comprised of two buildings of 31,732 and 19,365 ft2, built in 1980 and 1986, respectively. The property is described as a sub-acute care facility. CNL paid $3,848,966 in cash for the property and encumbered it with a new debt of $4.79m and under an existing $35.71m cross-collateralized note, both with Prudential Life Insurance Company.
North Mountain Medical Plaza is a 29,604ft2 3-story medical office building, built in 1994 on 1.95 acres. CNL acquired the property with financing similar to that under which they acquired the John C Lincoln Medical Plaza, to wit: $1,543,091 in cash with $3.53m new debt and encumbrance under the same $35.71m note as above. In both cases transfer was effected through a quit-claim following an assignment of the 59-year ground lease between John C Lincoln Health Network as landlord and the Montecito/Harrison Street joint venture.
The properties were previously acquired under said 59-year ground lease on February 29th,2008. While no affidavit of property value recorded with the sale, the Joint-Venture did secure $11.75m in new debt with Fifth Third Bank, maturing February 28th, 2011 subject to extension to February 28th, 2013. That note was modified on April 13th, 2011 to exercise the extension option and decrease the principal balance to $9.96m. That note was ultimately released and replaced with $10.55 in new debt with GE Capital, issued June 28th, 2012.
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