Capital One Arranges $534.9M Loan to Finance Starwood’s Acquisition of 34-Property Medical Office Portfolio

by Jeff Shaw

GREENWICH, CONN. — Capital One Healthcare has arranged a $534.9 million loan to fund Starwood Property Trust’s (NYSE: STWD) acquisition of 34 medical office buildings in 12 states.

The 1.9 million-square-foot portfolio includes properties in California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, New Jersey, New York, North Carolina, Tennessee and Texas. The seller and purchase price were not disclosed.

“This strategic acquisition provides us with a safe, resilient income stream and the opportunity to participate in the stable long-term growth of the medical office building sector,” says Barry Sternlicht, chairman and CEO of Starwood Property Trust.

The acquisition represents Starwood’s first entry into the medical office sector, according to commercial real estate research firm CoStar. The company will also take over management of the portfolio.

Capital One Healthcare is a financial services provider serving the healthcare industry. It is a subsidiary of financial holding company Capital One Financial Corp.

Starwood Property Trust is an affiliate of Greenwich-based private investment firm Starwood Capital Group. Starwood Property Trust’s stock price closed at $22.34 per share on Friday, Jan. 27, up from $18.64 one year ago.

— Jeff Shaw

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