Four Credit Facilities. No Client Cash Down. One Medical Clinic.

The Situation

The clients were purchasing commercial real estate for a medical clinic on the North Shore. But acquiring the property was only one part of the project. The space also required leasehold improvements, and the clinic needed operating liquidity to open and function properly.

A commercial mortgage by itself would finance the premises without addressing the complete cost of getting the medical clinic ready for operation.

The Challenge

The project required four different credit facilities, each serving a separate purpose: financing for the commercial real estate, financing for the leasehold improvements, a business operating line of credit, and a corporate operating credit card.

The clients also wanted to preserve their own capital rather than use it for the real estate down payment. The challenge was to structure the property, build-out and operating requirements as one complete healthcare project instead of treating them as four disconnected borrowing requests.

The Solution

We presented the medical clinic as one coordinated project and arranged four facilities around its actual financing needs.

The commercial mortgage financed the real estate. A separate facility covered the leasehold improvements required to prepare the space. An operating line of credit provided revolving working capital, while a corporate operating credit card supported ordinary business expenses.

Each facility had a specific purpose, but all four were structured around the same medical-clinic project. This allowed the complete capital requirement, not only the property purchase, to be considered.

The Outcome

The clients received all four credit facilities with no cash of their own used toward the real estate down payment.

The approved package included the commercial real estate financing, leasehold-improvement financing, a business operating line of credit, and a corporate operating credit card. Together, the four facilities totalled more than twice the real estate purchase price.

That does not mean the commercial mortgage exceeded 200% of the property value. The total was greater than twice the purchase price because it included the real estate facility together with financing for the clinic build-out and operating credit.

Instead of finishing with only a property mortgage, the clients received a coordinated financing structure designed to take the project from the purchase of the premises toward an operating medical clinic.