$26 million refinance of Florida medical offices & AB1482: Overview of new rent control law

We are pleased to announce that David Hamilton, Principal in our San Diego office, closed a $26,000,000 loan secured by two medical office buildings in Southern Florida. The financing was arranged on behalf of Hamilton’s borrowers, George Scopetta of Medicus Property Group and Martis Capital Management, and funded by one of PSRS’ relationship debt funds based out of San Francisco.

The non-recourse loan had a floating interest rate and a flexible prepayment structure which will allow for financing of capital expenditures and tenant improvements to enhance the aesthetics of the building and increase occupancy.

Click the following link to read more about this deal:

AB 1482 was signed by the Governor on October 8, 2019. It will take effect on January 1, 2020. As outlined below, this new law imposes rent caps on some residential rental properties in California. It also imposes "just cause" eviction requirements that apply after tenants have occupied the unit for a certain period of time. In cities that already have a rent control ordinance in place (under the Costa Hawkins Rental Housing Act), AB 1482 extends rent caps to some additional housing that is otherwise not covered under the existing local ordinance. The law exempts certain properties from the rent caps and just-cause requirements, including (1) most single-family homes and condominiums, and (2) housing built within the last 15 years.

Click to read more about AB-1482