3900 Madison Ave., Norfolk, NE 68701
The new Fountain Point Medical Office Building (“SurgiCenter”) development in rural Norfolk, Nebraska will focus on an 83,493 square-foot medical office complex. The Medical Office Building will include physical therapy, pediatrics, family practice, internal medicine, imaging, lab, orthopedics, specialty clinic, surgical/oncology, pain, ambulatory surgical center and a YMCA/daycare. There are shared common areas for IT, waiting space, reception, and restrooms.
The Fountain Point development is located on 55 acres in southwest Norfolk and will be a gateway to the community, giving physicians the autonomy to advocate for their patients. The goal of this development and project is to provide a continuum of care to meet the needs of the internal and external community. This project will also be a regional hub for medical services under one roof and provide the same specialty service found in larger metropolitan communities.
The new Fountain Point MOB is the result of a group of Norfolk physicians attempting to combat the lack of local medical service providers, as well as the rising cost of medical care, by building one large facility to house a wide variety of medical services, using the lowest cost of capital available. The SurgiCenter physicians decided that lower-cost financing options such as TIF bonds and the NMTC program, while less straightforward than a conventional construction loan, would ultimately mean a lower cost to the medical service provider tenant, and therefore a lower cost of care to the end user.
In January of 2018, SurgiCenter’s management hired Crescent to pursue NMTCs in conjunction with its overall financing plan for the expansion. Having already secured bank loan commitments and TIF Financing totaling $8.6 million, Crescent worked to secure an investor commitment along with both Nebraska State NMTC allocation and Federal NMTC allocation. In October of 2018, Crescent and SurgiCenter closed on $10.0M of Nebraska State NMTCs provided by Brownfield Revitalization, and $5.3M of Federal NMTCs provided by Brownfield Revitalization, leveraging a NMTC equity investment made by US Bank.
Without the Nebraska State and Federal NMTC subsidies the SurgiCenter would not be able to continue to expand its patient base while holding to its commitment to keep surgery costs low. The new SurgiCenter will be a ‘one-stop-shop’ medical complex for the surrounding, medically-underserved census tract; moreover, the NMTC subsidy significantly reduces the high construction costs typically associated with this type of modern medical facility, and that savings will directly translate to a lower overall cost of care to the residents of this low-income community. Additionally, the NMTC financing allows the Project to pursue energy efficient elements such as LED fixtures, low-flow plumbing, and high efficiency mechanical systems including HVAC, lighting, and water heating/storage, lowering facility operating costs, which further .