Medical Office Feasibility Study in the Sacramento-Roseville-Folsom, CA Metro Area

Medical offices in Sacramento and beyond

Sacramento, Roseville and Folsom brings 24 of 488 in the area ranking for medical office (physicians) loans and 10 of 39 in Sacramento, Roseville and Folsom’s class list. A 1.05x location quotient puts the share of local loans almost level with the national mix. SBA's files carry 69 loans for $54.4 million from FY2017 to FY2026. Half of Sacramento, Roseville and Folsom medical office loans fall from $210,000 to $1.1 million, around a $610,000 median that is 1.78x of the national medical office median. Loans here run larger than the national class median.

In Sacramento, Roseville and Folsom, medical office borrowers picked SBA 7(a) 48 times and SBA 504 21 times. The Mortgage Capital Development Corporation and Greater Sacramento Certified Development Corporation each hold 7 of the 504 loans, for $11.2 million and $7.1 million. For 7(a), U.S. Bank, National Association has 9 loans at $3.8 million, and Wells Fargo Bank National Association has 5 at $3.8 million. Franchise ownership reads 0.00%. Sacramento County supplies 38 of the 69 loans. Treat Sacramento, Roseville and Folsom lender counts as SBA’s holder record, saying nothing of The Mortgage Capital Development Corporation’s requirements. Loans, not lending policy.

On medical office loans in Sacramento, Roseville and Folsom, the FY2017 to FY2024 cohorts lost 21.6% or more to cancellation, a minimum, not an estimate. With undisbursed medical office loans in Sacramento, Roseville and Folsom treated as cancelled, the ceiling stays 21.6%. Looking at medical office in Sacramento, Roseville and Folsom, Sacramento medical offices show no charge-off rate, since Loan Analytics holds one back when few loans exist; withheld never means zero. Year by year, Sacramento, Roseville and Folsom has 12 loans and $9.3 million in FY2017, 7 and $5.4 million in FY2018, 7 and $5.3 million in FY2021, 7 and $6.8 million in FY2022, 5 and $4.8 million in FY2023, 7 and $5.8 million in FY2024, 10 and $6.4 million in FY2025, and 8 and $4.4 million in FY2026.

What a Sacramento study has to test

Sacramento medical offices need testing on referral base and payer mix for the specialty, the premises, owned or rented, and their cost per square foot, tenant improvement scope, and whether one practice can carry the note. In the appraisal the building must be valued apart from the going concern. Which medical office loans fall in the Sacramento, Roseville and Folsom area is set through the project county against the July 2023 boundaries, and a loan whose county does not match goes uncounted. These figures are context for a medical office study here, and funding is not guaranteed. The 21.6% cancellation floor in particular deserves a direct question to any lender about how many approvals reached closing.