The Anatomy of Deal

A deep dive into a recently funded commercial loan.

Traditionally, this space has been used to address big picture trends and topics in real estate from the perspective of a commercial lender and loan underwriter. This month we have elected an opposite approach with a deep dive into a recently funded deal.

In early December, a local developer and commercial property owner came to Juniper while under contract to purchase a hospital and medical office building in Yakima, WA. The property was being purchased out of bankruptcy, resulting in a great price for the client, but a firm timeline for closing as well. The client had previously been working with another private lender who had required a large upfront fee, but now had informed the client they would not be able to perform by the bankruptcy court’s appointed closing date.

Digging in to underwrite this loan request uncovered some relatively obvious strengths and weaknesses.


  • Borrower’s experience and track record developing and managing commercial real estate throughout eastern Washington
  • Borrower’s significant down payment on the property – over 50% of the purchase price
  • A highly desirable medical office building with lease LOIs already in place


  • Timing – only two weeks to close
  • Tertiary property location
  • A highly specialized property with a limited number of potential operators
  • Nearly 300,000 sf of vacant hospital space presenting significant upkeep expenses