Norvin Healthcare Lands $39M Loan for Philadelphia MOB

CIT Group arranged the financing for the Navy Yard property.
3 Crescent Drive

Norvin Healthcare Properties has obtained a $39 million loan to finance its Jefferson Health medical office building located near the Philadelphia Navy Yard Corporate Center. CIT Group Inc. arranged the financing through its Healthcare Finance division. CommercialEdge data shows Norvin acquired the fully leased Class A property in 2019 for $62.3 million from Liberty Property Trust.

The four-story, 106,400-square-foot medical office building occupies a 5.5-acre site at 3 Crescent Drive within the Philadelphia Navy Yard. Anchoring the corner of Crescent Drive and Diagonal Boulevard, the facility was the first building in the overall master plan to occupy that main axis of the 1,200-acre development.

The building is flanked by One Crescent Drive and Five Crescent Drive, two other office developments part of LPT’s former Navy Yard portfolio. An affiliate of Korea Investment Management Co. purchased Five Crescent Drive in 2018 for $130.5 million, while Ensemble acquired One Crescent Drive in 2019 for $26.6 million, according to CommercialEdge.

Three Crescent Drive

Completed in 2009, the LEED Gold-certified facility was designed by Erdy McHenry Architecture and features above standard ceiling heights and ground-floor retail. The property also includes Navy Yard’s first structured parking deck, with a capacity of 595 spaces.

Jefferson Health is the medical building’s anchor tenant, while the balance of the property is occupied by Jefferson Health Surgical Center, a joint venture between Jefferson Health, The Rothman Institute and ValueHealth. The on-site specialty offices include allergology, urology and family medicine, among others.

The property is some 4 miles south of downtown Philadelphia across from Crescent Park, just south of Interstate 95. Philadelphia International Airport is 5 miles west.

State of the MOBs

As a resilient asset class poised for quick recovery, medical office buildings remained relatively unaffected by the pandemic. The sales volume totaled $3.8 billion in the fourth quarter of 2020, according to a CBRE report, a mere 3 percent drop year-over-year.

While 18 transactions closed in the Northeast region, only one of them involved Philadelphia assets, CommercialEdge data shows. In December, the Hampshire Cos. acquired a two-building portfolio totaling 268,060 square feet from BG Capital.