Built in 2014, this 34,000-square-foot medical office building (MOB) in Austin, Texas, represents a standout asset in a challenging market. Unlike traditional office buildings, MOBs benefit from a unique tenant base. Their target market is less susceptible to macroeconomic cycles, as healthcare services remain essential even during economic downturns.

Located in a rapidly growing suburb of Austin, this property has capitalized on the area's explosive growth. Since 2010, the population within a 3-mile radius has surged by an impressive 9.2% annually, creating a high demand for medical services and supporting the building’s high occupancy. At the time of closing, the property was 96% leased, as healthcare professionals needed a space that would meet their in-person office needs.

The property’s specialized build-out, tailored to the needs of healthcare professionals, sets it apart from the broader office market.

RRA Capital provided a $7.2 million non-recourse, interest-only loan, structured to refinance the existing debt while offering the flexibility needed for ongoing success. The financing package included two extension options, a follow-on facility for capital expenditures and an interest reserve to supplement cash flow prior to stabilization.

‍