New York (January 9, 2020) – Capital One announced today that it provided a $38.6 million adjustable-rate loan to finance the acquisition of a 140,000-square-foot medical office building in Dover, Delaware. The borrower is a joint venture of MedProperties Realty Advisors, Capital Security Advisers, and Physicians Realty Trust. MedProperties and Physicians Realty are repeat Capital One customers.
The facility includes initial funding of $36.05 million, a $2 million holdback for tenant improvements and leasing commissions, and a $500,000 capital expenditure holdback.
The medical office building, which is almost completely leased, includes imaging and outpatient surgery centers affiliated with the Dover campus of Bayhealth Hospital, southern Delaware’s leading healthcare provider. Built in 2008, it is located on a 10.6 acre site.
“We were pleased to partner once again with MedProperties and Physicians Realty Trust. We have had a long and storied relationship with both parties,” said Erik Tellefson, Managing Director of Capital One Healthcare. “This is an excellent property in a stable market.”
MedProperties is a Dallas-based private equity fund that develops and acquires healthcare real estate including medical office buildings, out-patient facilities, ambulatory surgery centers, inpatient rehabilitation facilities, and surgical hospitals. Physician’s Realty Trust, a publicly traded healthcare REIT, specializes in acquiring, selectively developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems.
“We have partnered with Capital One many times because of the depth of their experience in medical office building finance,” said Darryl Freling, cofounder of MedProperties. “They are really quick to understand our goals for each property, structure the deal accordingly, and provide certainty of execution.”
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 $257.1 billion in deposits and $378.8 billion in total assets as of September 30, 2019. 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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