CNL Financial Group Acquires Two Medical Offices at John C Lincoln Hospital

VIZZDA—August 20^th, 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 29^th,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 28^th, 2011 subject to extension to February 28th, 2013. That note was modified on April 13^th, 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 28^th, 2012.

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By:

Paul Dionne

Director of Analytics

Vizzda.com