SBA 504 Medical Office Feasibility Study in Colorado

Colorado doctors' offices: one development company, large loans

B:Side Capital holds 22 of the 25 loans in this cell and $29.6 million of $35.2 million, as SBA lists current holders, so the class is financed almost entirely through one name. The median loan of $1.2 million is 1.85x the nationwide 504 figure, and loans near the middle fall from $555,000 to $2.0 million. Colorado ranks 11 among states by loan count, and physicians' offices fill slot 10 of 39 in the Colorado mix. Franchising is 0.00%. No metric differs enough from the comparators to meet the required margin, so the concentration and the size ratio are plain features of the cell.

Counties and the calendar

El Paso County has 6 loans, Arapahoe 4, and Adams, Boulder, Denver, Douglas, Jefferson and Larimer 2 each. Approvals reached 6 loans and $11.3 million in FY2018 and 6 loans and $6.1 million in FY2021, then ended with no approvals in FY2023, FY2025 or FY2026, and 2 loans and $2.4 million in FY2024.

Colorado's count is too small to publish either outcome percentage, so Loan Analytics prints none, and none should be read as nil.

Testing a Colorado medical office under 504

Since 504 finances a fixed asset, the study should start with the property: price or build cost, the share of space the practice occupies, and whether other tenants could take the remainder. Practice evidence follows: provider count, referral sources, payer mix and the pace at which a new site fills its schedule. Reimbursement should be modelled conservatively. The median is large, so the study should show the combined payment to the bank and the development company and a coverage ratio that holds at partial production. A lender's appraisal will price the building as a medical facility, and the study should show how readily it could be re-let to another practice, including the cost of converting exam rooms, the parking ratio and any shared systems that a new tenant would inherit.

One development company holds 22 of the loans, so the study is best written with that holder in mind: stabilised net operating income for the owner-occupied space, a clear plan for any leased space, and a written timeline for reaching full production.