Medical Office Building Capital Funding Proposals...

Rainmaker routinely prepares medical office building capital funding proposals for new construction medical office buildings ("MOBs") in addition to market feasibility studies, financial feasibility studies, business plans and private placement offering memoranda.  Most medical office building capital funding proposals focus on the FHA/HUD loan insurance title as the key capital funding element supporting the development and construction expenses associated with a new MOB project.  There are alternatives.

But, HUD is not the only player who has an ongoing interest in the development financing of new medical office building projects.  Recently, institutional investors have made a definitive impact in both the bond markets where a given project issue is floated on the basis of it being a higher-yielding unrated bond (junk bond).  Investment bankers and mortgage bankers play a key role here in providing the sales support necessary to sell out a given issue.  Commercial banks area also well-established in the MOB arena, but the collateral posting requirements that commercial banks typically require usually precludes the commercial bank route from being a cost-efficient alternative.  This means that private placements of debt (senior secured notes) into the institutional market would seem to be the way to go because the HUD route dramatically increases the carrying costs associated with the proposed project due to the long application lead times that a HUD proposal would have to endure.  This means a commitment of more at-risk capital must be made (instead of less) to the project, thus reducing the developer's (or owner/operator, as the case may be).  This would suggest that a comprehensive entitlements review be undertaken as part of the due diligence review process that is incumbent upon the developer to undertake as part of the market feasibility analysis reporting process.  The due diligence review is where Rainmaker Marketing Corporation can play a pivotal role in your MOB development program.