Financing

Scalable Financing Solutions to Get Your Medical Development off the Ground

PCI's financing solutions mitigate your initial out-of-pocket expenses and manage all loan procurements for your project:

  • PCI requires no down payments
  • PCI pays for the project's soft costs
  • PCI procures and guarantees the construction loan
  • PCI will obtain permanent financing on behalf of the Single Asset Entity (SAE)* which will purchase the asset at fair market value (FMV)
  • Your payment is due upon project completion (sold to owner as owner occupied or syndicated via a confidential private offering memorandum)

 

 *Note: A SAE is usually a limited liability company (LLC) or a limited partnership (LP) that owns only one commercial property. 

Whether your project is a new build (denovo/relocation) or the an assest monetization of an existing facility, PCI is honored to provide each customer with a multitude of financing options and ownership structures (whole or fractional) that fit your current and long-term business plans:

  • Owner Occupied- Purchase your project outright from PCI upon its completion. Lending terms for owner occupied facilities will differ among lending insitutions. Currently, assets qualified as owner occupied receive the most favorable interest rates and terms
  • Fractional Ownership (Property Syndication via Reg. D Offering)- The equity component is financed through a Confidential Private Offering Memorandum (CPOM) managed by Physicians' Capital Markets, LLC.  This product provides you and others within your practice the opportunity to purchase as many ownership units as you wish. Any unsold units will then be made available through the CPOM to PCI's investor base Group I-IV or until the offering is sold out. The debt component is financed through PCI's diverse mix of lending partners at current market rates. Debt to equity ratios will range from 70-80% (debt) and 30-20% (equity)
  • PCI Ownership- PCI may develop and assume the ownership of the facility at no cost to you. All that will be required is a guaranteed long-term lease

 

Asset Monetization (via a Simple Cash-out or Property Re-Syndication via Reg. D Offering)

Today, physicians as well as practices may simply wish to cash-out, or need to rebalance exisiting ownership levels to reflect current practice dynamics. The latter could be the result of physicians or practices finding themselves in a tight liquidity position, or various other factors such as:

  • For retiring physicians it may be a need to cash-out of their real estate holding upon retirement in order to fund their retirement
  • For practices it may be a need to convert the locked-in value (equity) of their existing real estate into cash (liquidity) in order to leverage the equity for growth opportunities (i.e., renovating and expanding existing properties, building new facilities, acquiring additional operations, retiring existing debt, etc.)

 

Upon the establishment of the asset's FMV (conducted by a 3rd party), PCI will consult with the current owners in order to determine which ownership structure (owner occupied, fractional ownership or PCI ownership) best fits long term business plans and goals of not only the current, but potential future owners of the asset.  Regardless of option chosen, PCI's goal is to provide you with a way to unlock and maximize the value in your existing real estate asset.