News Release: Capital One closes $33.6 million loan for Chicago-area MOB acquisition

PressReleaseIconBethesda, Md. (July 25, 2016) – Capital One announced today that it provided a $33.6 million term loan for the acquisition of a portfolio of four medical office buildings in the Chicago area. A joint venture of Harrison Street Real Estate Capital and MedProperties Group purchased the properties.  The commitment includes $26.8 million in initial funding, a $6 million tenant improvements/leasing commissions holdback, and a $750,000 capital expenditure holdback.

Since its founding in 2005, Harrison Street Real Estate Capital has acquired or developed more than 640 properties in its targeted sectors of student housing, senior housing, medical office and self-storage.  MedProperties is a medical office developer and operator solely dedicated to investments in healthcare real estate. It has an extensive portfolio of medical office and specialty facilities and has become one of the premier medical office developers in the Midwest through its relationships with major health systems.

“Capital One Healthcare has built longstanding, trusted relationships with both of these companies,” said Erik Tellefson, Managing Director of Capital One Healthcare. “This transaction enabled Harrison Street to acquire majority ownership of the portfolio from MedProperties, which retained a minority stake. Because our team had provided MedProperties the financing for its original purchase of the portfolio, we were able to reference our extensive knowledge of the assets to efficiently and quickly close the transaction.”

Capital One Healthcare is a leading provider of financial services to the industry with over $11 billion in total outstanding balances. Customers across healthcare sectors—including senior housing, healthcare services, pharmaceuticals, medical devices, healthcare IT and medical offices—rely on Capital One Healthcare to finance acquisitions, refinance existing debt, support working capital needs and fund growth initiatives. With in-depth expertise, our team of professionals creates solutions tailored to meet the needs of our customers.

Capital One Healthcare is a part of Capital One Commercial Banking, which leverages a relationship-based banking model that seamlessly delivers an array of products and services including loans and deposit accounts, treasury management services, merchant services, investment banking, international services and correspondent banking.

About MedProperties Group

MedProperties Group, founded in 1994, is an established medical real estate investment, development and operating platform based in Chicago. The team is comprised of senior real estate professionals with institutional backgrounds and healthcare provider experience. MedProperties Group targets acquisition, development and redevelopment investments in a variety of healthcare types with a focus on medical office, specialty facilities and life science properties.

About Harrison Street Real Estate Capital

Harrison Street is a real estate private equity firm founded in 2005 by real estate veteran Christopher Merrill, Chris Galvin (former Chairman & CEO of Motorola) & Mike Galvin (former Assistant Secretary of the U.S. Commerce Department for Export Administration) that directly and through its affiliates, has approximately $10.9 billion in assets under management (AUM) through commingled funds and public securities products. The commingled funds focus exclusively on the Education, Healthcare and Storage segments of the US real estate market. Since inception, the Firm has acquired or developed over 640 properties in 45 states including over 387,000 student housing beds, more than 18,700 senior housing units, over 6.7 million square feet of medical office space, and more than 105,000 self storage units.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $221.1 billion in deposits and $339.1 billion in total assets as of June 30, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

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