HFS Provides $33.5M Mortgage for Medical Office Complex

Healthcare Financial Services provided a first mortgage to Landmark Healthcare Facilities LLC.

By Anca Gagiuc, Associate Editor

Healthcare Financial Services (HFS) has provided a $33.5 million mortgage to Landmark Healthcare Facilities for a new Kansas City medical office complex. Proceeds will be used to replace construction financing and for other corporate needs.

Truman Medical Center - Hospital Hill
Truman Medical Center – Hospital Hill in Kansas City

“It is a pleasure to work again with Landmark, a premier medical office developer, and with Physicians Realty Trust, providing the mezzanine financing, on this new facility which will quickly become a source of vital medical services and new jobs in the region. We continue to support the Medical Office asset class and are actively lending, adding value with our healthcare expertise, structure and flexibility, on-book relationship lending and high certainty of close,” Erik Rellefson, managing director of Healthcare Financial Services, said in prepared remarks.

The new medical office building represents a 90,156-square-foot expansion to Truman Medical Center’s Hospital Hill campus at 2301 Holmes St. The project received development incentives designed to encourage investment in urban renewal areas through Kansas City’s Land Clearance for Redevelopment Authority program.

“We’ve worked on over a dozen transactions with Erik Tellefson and Healthcare Financial Services since 2011. In addition to being a reliable source of financing, they bring an in-depth understanding of the unique requirements of medical office buildings,” added Mark Eisenmann, Landmark’s CFO.

Landmark of Milwaukee is a full-service developer of physician office buildings and clinics, ambulatory care and surgery centers, cardiac and cancer centers, imaging centers, fitness and women’s centers, and laboratories.

“We are very pleased to close another transaction with Healthcare Financial Services and with Landmark. We value these relationships and the value and expertise all parties bring to the table, and look forward to future transactions,” said John Thomas, president & CEO of Physicians Realty Trust.

Photo credits: Voidxor via Wikipedia