Banking & Finance

Warren Medical Center Sold in Foreclosure for $3 Million

WARREN, Ohio — The North Mar Medical Center, a six-building, 62,295-square-foot office park at 3843 E. Market St. here, was sold in foreclosure to the loan noteholder, a commercial mortgage securities trust, for $3 million. The sale price equates to about $48 per square foot.

The transaction tops commercial real estate sales during the month of February and is featured in the MidMarch edition of The Business Journal, published this week. Other large transactions last month include the sale of a warehouse at 1725 Salem Parkway West in Salem for $375,000 to ERZ Enterprises LLC.

The North Mar Medical Center property previously sold for $7.75 million in December 2007. A $4.85 million loan backing that purchase was securitized in Citigroup Commercial Mortgage Trust 2008-C7. The loan was set to mature this coming September, records show.

According to the trust’s February 2017 investor notes, repayments on the loan had not been made since October 2015.

As of March 31, 2016, the net operating income from the property was $231,000. Loan repayments were approximately $405,000 per year.

The property is about 12 blocks from St. Joseph’s Hospital. The top two tenants at the property are Warren Otologic Group (9,700 square feet at a base rent of $16.37 per square foot expiring this coming October); and Warren Ophthalmology Associates (5,757 square feet at a base rent of $16.24 per square foot, expiring in September 2018.)

Reported by Mark Heschmeyer.

Published by The Business Journal, Youngstown, Ohio.