Medical Office Feasibility Study in the San Antonio-New Braunfels, TX Metro Area

Medical office lending around San Antonio

SBA approved 74 medical office loans worth $51.5 million in the San Antonio-New Braunfels, TX metro area between FY2017 and FY2026. The area stands 22 of 488 among metropolitan and micropolitan areas for the class, while inside the area medical office is placed 8 of 39, a middling position and not a leading one. Its location quotient is 1.74x: medical offices weigh far more in local SBA lending than they do across the country. Bexar County, TX carries 63 of the loans and Guadalupe County, TX 5.

The median loan is $478,350 and the middle half runs from $242,500 to $950,000. Beside the national class median, San Antonio reads 1.40x, so local loans are noticeably larger than usual. The program split is 57 SBA 7(a) loans and 17 SBA 504 loans: 7(a) loans outnumber 504 loans by more than three to one. The franchise share is kept back by Loan Analytics, so none prints here.

Banks and development companies that hold the loans

Three 504 holders appear: Capital Certified Development Corporation (6 loans, $7.6 million), LiftFund, Inc. (6 loans, $5.7 million) and Texas Certified Development Company, Inc. (5 loans, $3.9 million). On the 7(a) side, 9 loans worth $6.5 million sit with PNC Bank, National Association, 5 worth $4.4 million with Wells Fargo Bank National Association, 5 worth $3.3 million with Newtek Bank, National Association and 5 worth $2.9 million with Prosperity Bank. SBA reports who holds each loan today; the listing says nothing of how any holder lends.

Cancelled approvals from FY2017 to FY2024 came to 12.7% at the least, and the undisbursed-as-cancelled ceiling lands on that same 12.7%. The charge-off rate stays blank because its base is thin, a gap rather than a zero. San Antonio posted 12 loans worth $6.3 million in FY2017, 9 worth $8.1 million in FY2021, 11 worth $6.8 million in FY2024 and 5 worth $3.7 million in FY2026, with the remaining years withheld by Loan Analytics for small counts. Membership in the area rests on each project county under the July 2023 delineation, so San Antonio leaves out a loan whose county will not match.

Testing a San Antonio medical office project

Demand for a practice depends on its specialty, the referral sources nearby and the payers it will bill, so the study should model patients per provider and the months it takes payers to credential a new physician. With loans running larger than the national class, build-out per exam room deserves a line-by-line review. Coverage should rest on collections, not charges billed, and an owner-user should show the rent saved as part of the payment story. The appraisal has to value specialized improvements apart from location, and ask which other tenants could use the suite.