CardioVascular Associates of Birmingham
Interest rate swap helps large cardiovascular group to develop new center
Birmingham, AL – January 11, 2011 – CardioVascular Associates of Birmingham (CVA) announced the development of a new center in Birmingham intended to consolidate its group. CardioVascular Associates is one of the largest cardiology practices in the Southeast, providing heart and vascular care to over 46,000 patients a year.
CardioVascular Associates joined with Corporate Realty Associates as their project developer and Capital Markets Access Company (CMAC) as their financial advisor to complete the transaction. “When CVA made the decision to consolidate offices and build a central site, the need for professional assistance in obtaining cost-effective financing became very evident based on the size of the project,” said Jim Crandall, CFO for CardioVascular Associates. “That’s when we retained CMAC,” adds Crandall.
CMAC arranged financing for 100% of the $21,000,000 project cost through the City of Birmingham Medical Clinic Board. The 80,000 square foot building will be constructed in the Colonnade section of Birmingham. “CMAC’s combined expertise in the capital markets and medical community guided CVA through every step of the process including reviews of the RFPs and negotiating the best available terms,” cited Crandall.
Interest Rate Swap Details
In order to secure the best financing terms for the CVA, CMAC enlisted the services of Swap Negotiators to structure two Interest Rate Swap transactions which were used to fix the interest rate for the project. The all-in interest rates for the equity loan were 3.74% for 5 years, and for the construction-permanent loan 4.19% for 10 years. “Engaging CMAC and Swap Negotiators to handle the financing of our $21MM facility was one of the best business decisions we made for our project,” said Dr. Chandler, President of CVA. “It was important to us to have someone address each question and simplify the complex nature of this type of transaction since we have 32 physicians in our group,” Dr. Chandler further added.
The new center is scheduled to open sometime in 2012 in mid-year.
About CardioVascular Associates – CardioVascular Associates of Birmingham was founded by Dr. John B. Burrett in 1946. Centered in Birmingham, Alabama, CardioVascular Associates (CVA) has grown to 32 cardiologists who specialize in an array of diagnosis and treatment options. CVA has created a network of talent, skill and technology where patients aren’t just cared for – they are cared about. CVA uses the latest technology to detect and diagnose heart disease. Unique diagnostic services include use of PET/CT for cardiac stress testing, and outpatient cardiac catheterization in the private setting of our own outpatient cath lab. Advanced nuclear and ultrasound imaging of the heart are also commonly used. CVA is recognized as one of the largest and most respected cardiovascular practices in the Southeast. For more information about CVA please visit www.cvapc.com or call (205) 599-3525.
About CMAC - CMAC is a commercial financing firm that works as an advocate for owner- occupied physician groups providing below market real estate financing options through a unique structure. CMAC is located in Winter Park, Florida, just outside Orlando and has provided financing services nationwide. For additional information about CMAC please visit www.cmaccapital.com or call 407-895-6000.
About Swap Negotiators – Swap Negotiators is a highly specialized group that provides expertise exclusively for commercial borrowers. Located in central Florida, Swap Negotiators provides advice on interest rate swap contracts for commercial borrowers and works in partnership with banks to provide transparent pricing, valuations and ongoing support for the life of a swap. Additional information about Swap Negotiators can be obtained by calling (407) 264- 7253 or by visiting www.swapnegotiators.com.
About Corporate Realty - Corporate Realty is recognized as the leading single-source provider of comprehensive commercial real estate services, thereby maximizing each client’s potential while maintaining the highest degree of integrity and uncompromised quality of service. Corporate Realty is where experience, knowledge and resources come together to offer one simple solution to all aspects of commercial property. From site development, to construction, to marketing and management, we can assist you from the ground up. For more information about Corporate Realty please visit www.corporaterealty1.com or call 205-322-0703