CHEVY CHASE, MD. — Capital One Bank (NYSE: COF) has served as lead arranger, administrative agent and bookrunner for loans totaling $150.6 million for the acquisition of nine Class A medical office buildings in North Carolina and Georgia. CNL Healthcare Properties Inc., a Florida-based real estate investment trust (REIT) focused on acquiring and developing properties in the seniors housing and healthcare sectors, was the buyer.
Five of the properties are located in and around Charlotte on three Novant Health campuses. Of the remaining four, one is located in Asheville, N.C., on a Duke LifePoint campus; another is in Rome, Ga., at Floyd Medical Center; and two properties near Atlanta are satellite offices for Southern Regional Medical Center. Together they total 907,300 square feet of rentable space. Certain properties have ground leases that prohibit cross-collateralization. As a result, Capital One financed them through individual term loans, consolidating the remaining properties into a single loan.
“This transaction highlights the structural flexibility we offer clients across the country, as well as our capacity to accommodate a deal of this size,” says Todd Gordon, managing director of Capital One Bank. “CNL Healthcare is one of the premier organizations in the industry, and we are pleased they turned to us for financing.”
CNL Healthcare Properties is a third-party owner of medical office buildings, acute care and post-acute care medical facilities. The acquisition also increases the size of the company’s portfolio to approximately 100 assets, including healthcare facilities and seniors housing communities.
“The Capital One team demonstrated a sophisticated understanding of the strategic importance of medical office buildings in our portfolio and the financing challenges such investments can often have,” says Joseph Johnson, senior vice president and chief financial officer of CNL Healthcare Properties. “Their expertise was an important factor in our ability to complete this complex transaction by our deadline.”
Capital One Bank’s Healthcare team provides banking and lending solutions to the healthcare marketplace, including real estate loans, enterprise term loans and revolving lines of credit to address their capital needs. Capital One Bank’s Commercial Business leverages a relationship-based banking model that delivers loans and deposit accounts, treasury management services, merchant services, investment banking, international services and correspondent banking.
Capital One’s stock price closed at $78.84 per share Wednesday, up from $71.26 per share at this time last year.
— Haisten Willis