Capital One announced today that it provided a $104.4 million adjustable-rate loan to a joint venture between Catalyst Healthcare Real Estate and Bain Capital Real Estate for the acquisition of 21 medical office buildings totaling 531,000 square feet and located across eight states. This is the second transaction that Capital One closed with Catalyst last year.
The loan consists of $94.4 million in initial funding and holdbacks for tenant improvements/leasing commissions and capital expenditures.
“Catalyst is one of the nation’s fastest-growing healthcare real estate development and acquisition firms,” said Erik Tellefson, Managing Director of Capital One Healthcare. “Over the last few years, they have been working very hard to grow relationships and expand their geographic footprint. This transaction advances that strategy.”
Catalyst Healthcare Real Estate is a healthcare real estate development and acquisition firm that owns, manages, and services over two million square feet of healthcare real estate in 12 states in the Southeast and Midwest. It is partnering with Bain Capital Real Estate, which was formed earlier last year and whose team has been investing together since 2010. The team focuses on small-to-mid-sized assets where it applies its operational expertise to accelerate impact and drive earning power.
“We very much appreciated the expertise that Capital One brought to our transaction,” said Chad Henderson, Catalyst’s CEO. “Closing on this portfolio was a big step in our company’s growth plans.”
The portfolio consists of predominately off-campus properties in Florida, Tennessee, Georgia, Texas, Virginia, Illinois, Indiana, and North Carolina. It is 95 percent leased.
Capital One Healthcare is a leading provider of financial services to the. 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 $249.8 billion in deposits and $372.5 billion in total assets as of December 31, 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.
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