Atlanta Metro Medical Office: Bridge Loan and Refinancing Assistance

Spectra's investment thesis centered on multiple converging factors supporting favorable risk-adjusted returns. The underwritten net operating income relative to the loan amount provided significant downside protection in default scenarios, while the 65% loan-to-value ratio created substantial equity cushion.

The property's location within the Atlanta MSA—the nation's sixth-largest metropolitan area—offered deep market liquidity for medical office assets. Appraiser-provided cap rates ranging from 5.36% to 6.99% demonstrated strong investor demand for the asset class. Spectra underwrote to a 6.65% cap rate, consistent with recent comparable transactions. These cap rates exhibited tight spreads to permanent financing rates, particularly favorable for long-term holders and owner-users, supporting confidence in refinancing feasibility.

The borrower's nine-year operational history at the property and established professional reputation—including his position as the Atlanta Falcons' official team chiropractor—provided additional performance visibility and validated the practice's sustainability and revenue quality.

The borrower faced competing priorities: capitalizing on an immediate investment opportunity while awaiting permanent financing that required a 60 to 75-day procurement timeline. Given the short-term nature of the capital need and the time-sensitive investment opportunity, the borrower prioritized execution speed over rate optimization.

Spectra's ability to close rapidly aligned with the borrower's requirements, while the three-month term structure limited the absolute interest cost despite higher monthly rates. The interest-only payment structure further enhanced cash flow flexibility during the bridge period, allowing the borrower to focus resources on the planned investment while maintaining the practice's operational requirements.

The borrower, a licensed chiropractor operating through a wholly-owned LLC, sought to leverage appreciated equity in his owner-occupied medical office building for immediate investment opportunities. While the borrower had identified time-sensitive investment deployment, his permanent financing required an additional 60 to 75 days to secure, creating a timing gap that threatened the opportunity.

Spectra structured a three-month interest-only bridge loan to provide interim capital while the borrower arranged permanent financing. The loan demonstrated favorable debt service coverage metrics based on the established cash flow generated by the chiropractic practice, which had operated from the property for nine years. The borrower's role as the official team chiropractor for the Atlanta Falcons further validated the practice's stability and revenue quality.

The Greater Atlanta MSA represents the sixth-largest metropolitan area in the United States by population. At the time of loan origination, the market demonstrated robust economic fundamentals with unemployment at 2.8% according to the Bureau of Labor Statistics, well below national averages.

Medical office buildings within the subject property's market area demonstrated consistent value appreciation, with recent comparable sales ranging from $535,000 to $2,070,000, or $203 to $262 per square foot. Buford maintains an established reputation as a desirable location for both residential and commercial activity, with the subject property benefiting from strategic positioning near business and retail corridors that support consistent patient traffic and practice visibility.