Medical Office Feasibility Study in the San Jose-Sunnyvale-Santa Clara, CA Metro Area

Physician offices borrow at more than twice the national size

The standout metric in Santa Clara County's medical office record is loan size. Physician offices account for 45 loans and $43.9 million approved across the decade, and a median of $737,000 stands 2.15x the national figure. The quartile edges are $250,000 and $1.3 million. Locally medical office is 7 of 39; its location quotient of 1.20x accompanies a national placement of 30 of 488.

A real estate-heavy program split

The program counts are 28 for 7(a) and 17 for 504, so more than a third of the loans are 504, which is the real estate product. Franchise share is 0.00%, as expected for physician practices. In a county where office space costs more than almost anywhere in the country, owning the suite through 504 can be a deliberate choice.

Two holders on the same count

Capital Access Group, Inc. and Wells Fargo Bank National Association each appear as holder of record on 9 loans, with $14.3 million and $6.1 million respectively. These are SBA tallies and no view of either institution. The years that print are FY2017 with 5 loans and $4.1 million, FY2018 with 7 and $6.2 million, FY2019 with 7 and $5.6 million, FY2021 with 6 and $4.3 million, and FY2022 with 7 and $11.9 million. FY2020 and FY2023 through FY2026 are withheld.

Unpublished outcome rates

The 45 loans give no printable cancellation rate or charge-off rate, and nothing blank there should be read as zero. The county names behind the 45 loans must be found in the 2023 area list, or the loan drops out.

What a Santa Clara physician office study must test

The practice study should test panel size, payer mix, how many exam rooms the schedule can fill, and the clinician recruitment plan. In a high-cost county, build-out, lease rate and tenant improvement allowances can dominate the budget, and a 504 loan implies the borrower may be buying the building. Run coverage at $737,000 and near $1.3 million. The appraiser should separate real estate, medical equipment and the practice value. Because physician offices here borrow at more than twice the national size, a study should explain what drives that premium before accepting it as normal for the project.