Duo Procures $38M Construction Loan for Bradenton Rehab Center

CROSS Development and Kennor Holdings obtained a $38 million construction loan along with PACE financing for a rehabilitation hospital in Bradenton, Florida. The project will be managed by Nobis Rehabilitation Partners, which currently manages 14 hospitals nationwide, with another eight in the construction pipeline. This will be the fourth project in Florida that Nobis is managing with the other three hospitals located in Jacksonville, Orlando, and Tampa. The Bradenton development represents the fourth Nobis Rehabilitation Hospital to be built by the co-development team.

Marcus & Millichap Capital Corporation arranged the financing led by Dallas-based Senior Director Kevan McCormack. The 60% loan-to-cost bank loan was structured at SOFR + 400, floating for two years, followed by a three-year mini-perm at SPFR + 340 fixed. The 20% loan-to-cost PACE financing was structured at an 8.77% fixed rate with a 30-year amortization and three years of interest only. A Property Assessed Clean Energy (PACE) loan is a type of financing available to make energy efficiency upgrades and renewable energy improvements.