Kennedy Funding Financial LLC has completed a $3.5 million loan for Lifestyle Real Estate I, LP, announced Gregg Wolfer, COO of the Englewood Cliffs, NJ-based direct private lender. The borrower is an affiliate of Lifestyle Healthcare Group (LHG), and the collateral is a 10.31-acre tract of vacant land in Bensalem Twp., Bucks County, PA. LHG has received approval from the township for a $185 million medical office campus.
"The borrower has received final approval for this major project, and intends to spend $2 million from the loan proceeds for site work and for working capital," said Wolfer, who notes that the two-year, interest-only loan has an initial interest rate of 12%. "The borrower also anticipates obtaining a construction loan to pay off this loan."
The borrower acquired the tract, located at the intersection of US Route 1 and the Pennsylvania Turnpike in Bensalem, in October, 2013. More than $3.1 million has been invested to obtain zoning change to business park, for governmental approvals and variances, and engineering, as well as demolition of an existing building in 2014.
Plans for the Lifestyle Center call for construction of three structures, including a 178,439-square-foot medical service center, a 109,480-square-foot skilled nursing facility, and a 97,000-square-foot parking structure. The campus will have a net rentable area (NRA) of 198,706 square feet.
"The Lifestyle Center will be an all-inclusive integrated medical complex delivering medical care, screening, and procedures," said Dr. Fred Rappaport, chairman and CEO of LHG. "Patients will get all of their healthcare in one convenient location, and benefit from the latest technology."
Medical specialties offered at the Lifestyle Center will include women's health, orthopedics, cancer treatment, primary care, plastic surgery and general surgery. In addition to on-site specialists and practicing physicians, the center will also offer on-site labs, advanced medical technology, electronic medical record-keeping, and sports training and rehabilitation.
"This integrated approach is a response to the aging of the baby boomer generation, requiring new medical facilities, and most of health care today is being delivered on an out-patient basis," said Dr. Rappaport. "This location offers good proximity to major arterials, providing access from many locations, and the Philadelphia region is known as an 'eds and meds'-based economy due to its stable backing of education and the health care industry."
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