FOR IMMEDIATE RELEASE
Colonial Vista in Wenatchee, Wash. (Photo courtesy of Prestige Care)
Bethesda, Md. (August 22, 2017) – Capital One announced today that it provided a $41.1 million first mortgage and a $5 million senior credit facility for Prestige Care, an Oregon-based owner and operator of independent living, assisted living, memory care and skilled nursing facilities. The company used the mortgage loan to acquire four senior housing and skilled nursing facilities in Washington and Idaho and to refinance three facilities it owns in Oregon and Washington. Together, the facilities total 751 units. Prestige will use the revolver to support general corporate purposes and working capital needs.
“We devised a structure for the real estate loan that enabled Prestige to leverage the equity it had in three of its existing facilities to finance the acquisitions,” said Dague Retzlaff, Senior Vice President, Capital One Healthcare. “The company was able to purchase the new facilities with significantly less cash equity than would have been required if it financed the acquisition as a stand-alone transaction.” The loan also included funds for capital improvements to improve the physical condition and marketability of the facilities, and for an earn-out, which will allow equity recapture.
“We were very pleased with the responsiveness and flexibility that Capital One demonstrated throughout the transaction,” said Daniel Porter, Prestige’s CFO. “We also value the bank’s capacity to offer asset-based lending and treasury management services as well as real estate lending.”
Founded in 1985, Prestige Care operates a portfolio of more than 80 senior care communities in eight western states. It specializes in revamping facilities in rural, medium-sized markets.
As part of the transaction, Prestige is acquiring:
- Colonial Vista in Wenatchee, Wa.
- Hearthstone Cottage of Ellensburg in Ellensburg, Wa.
- Hearthstone Cottage of East Wenatchee in East Wenatchee, Wa.
- Karcher Estates in Nampa, Idaho
The company is refinancing:
- Coast Fork Nursing in Cottage Grove, Ore.
- Oregon City in Oregon City, Ore.
- Prestige Assisted Living at Hazel Dell in Vancouver, Wa.
Capital One Healthcare is a leading provider of financial services to the industry. 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.
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 $239.8 billion in deposits and $350.6 billion in total assets as of June 30, 2017. 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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