Whether you’re launching a new specialty practice or expanding an existing one, constructing a medical office or facility is a major investment. From purchasing land and managing contractors to outfitting exam rooms and navigating compliance, healthcare professionals face unique financial challenges during the build-out phase.
At Union Savings Bank, we work closely with medical professionals across Connecticut to offer tailored lending solutions. If you’re planning to build or expand, here’s what to know about securing medical office building financing that supports both your long-term goals and day-to-day operations.
Understanding the Costs of Medical Office Construction
Unlike traditional commercial projects, medical office construction requires:
- Specialized HVAC and electrical systems
- ADA-compliant layouts
- Medical-grade finishes and fixtures
- Space for imaging equipment, surgical suites, or treatment rooms
- Strict zoning and regulatory requirements
These factors contribute to higher upfront costs—which makes choosing the right financing strategy essential.
Financing Options for Medical Office Projects
Medical Office Construction Loans
These short-term loans are designed to cover the cost of building a new facility from the ground up. Funds are typically released in phases, or “draws,” based on project milestones. Once construction is complete, the loan can often be refinanced into a longer-term mortgage or real estate loan.
Construction loans are ideal for:
- New practices establishing a flagship location
- Expanding facilities to include surgical or diagnostic centers
- Renovating outdated spaces for modern medical use
Healthcare Real Estate Loans
Once your facility is built or acquired, a long-term commercial real estate loan can help you finance the property over time. These loans are well-suited for:
- Purchasing an existing medical office building
- Refinancing a construction loan into a mortgage
- Expanding your footprint with multiple locations
With competitive rates and flexible terms, healthcare real estate loans are essential for maintaining healthy cash flow while growing your practice.
Equipment and Tenant Improvement Financing
Outfitting your space with exam tables, diagnostic equipment, or waiting room furnishings? We also offer financing for medical equipment and tenant improvements that complement your real estate loan—so you can create a fully functional facility from day one.
Let’s Build Your Future Practice
If you’re ready to explore options for medical office building financing, Union Savings Bank’s Commercial Lending Team is here to help. Let’s work together to bring your vision to life—without compromising your financial health. Learn more.
All loans and lines are subject to credit approval.
