Paragon Outcomes Buys Pennsylvania Medical Office With CMBS Loan from Goldman Sachs
Paragon Outcomes Management has acquired a medical office building at 79 Wagner Road in Monaca, Penn., Commercial Observer has learned.
The purchase was partly funded with a $12 million CMBS loan from Goldman Sachs, sources said, in a deal brokered by CBRE. The acquisition price could not immediately be ascertained, but sources said the 10-year fixed-rate financing has a loan-to-value of roughly 65 percent.
Located within the Pittsburgh MSA, the 59,000-square-foot property is leased to a single investment-grade tenant—Heritage Valley Health System— on a long-term, triple net lease. The Class A facility was built-to suit by Pittsburgh-based Castlebrook Development, which remains in the deal as a minority equity investor. The property neighbors the Heritage Valley Beaver Hospital.
“Paragon’s real estate investment platform continues to expand with this medical office acquisition,” Frank Tripoli, managing partner and chief investment officer at Paragon, said. “The long-term nature of our capital base provides us with the opportunity to acquire assets with stable cash yields and significant long-term capital appreciation potential.”
New York-based Paragon has more than $550 million in assets under management and invests across the capital structure, from whole loans to mezzanine, preferred equity and common equity investments. The private investment firm focuses on office, industrial, multifamily, condos, self-storage and medical office properties nationwide.
“As both a frequent borrower and mezzanine lender in the market, we were able to lock in attractive long-term fixed-rate financing for this acquisition,” Tripoli said.