Bethesda, Md. (August 21, 2018) – Capital One announced today that it provided a $57.6 million adjustable-rate loan to refinance a two-building healthcare portfolio in Houston, Texas. The properties are owned by CNL Healthcare Properties. The proceeds were used to refinance existing debt and recapture equity.
The portfolio consists of a four-story, 126,000-square-foot orthopedic and spine surgery hospital with 64 licensed beds and 10 operating rooms connected to an adjacent two-story, 102,000 square-foot-medical office building. Both properties were built in 2007. Memorial Hermann Health Systems leases 100 percent of the surgical center and almost half of the medical office building.
“We were able to develop a financing solution for this mixed portfolio that aligns with the company’s business plans and their overall portfolio debt strategy,” said Erik Tellefson, Managing Director of Capital One Healthcare. “We have a long-standing relationship with the team at CNL Healthcare Properties and look forward to continuing to work with them.”
CNL Healthcare Properties is a non-traded real estate investment trust with a strategic focus on seniors housing and healthcare. Its holdings comprise 142 healthcare properties, including 54 medical office buildings, across the United States. The company purchased the two Houston buildings in 2014.
“When it comes to focus on the healthcare industry, Capital One is among the premier financing partners of our company,” said John Starr, Chief Operating Officer with CNL Healthcare Properties. “For us that translates into certainty of execution and rapid turnaround.”
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. Additional information can be found at capital.one/healthcare.
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 $248.2 billion in deposits and $364.0 billion in total assets as of June 30, 2018. 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.
Editor’s Note: The addresses of the properties are:
Surgical Hospital: 5410 West Loop South, Bellaire, TX 77401
MOB: 5420 West Loop South, Bellaire, TX 77401
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