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News Release: Capital One closes $534.9M loan to finance Starwood Property Trust MOB portfolio acquisition


Capital One Closes $534.9 Million Loan to Finance Acquisition of Medical Office Building Portfolio

This 72,000 MOB at 155 Crystal Run Road in Middletown, N.Y., was one of the properties acquired by Starwood Property Trust. (Photo courtesy of Crystal Run Healthcare)

This 72,000 MOB at 155 Crystal Run Road in Middletown, N.Y., was one of the properties acquired by Starwood Property Trust. (Photo courtesy of Crystal Run Healthcare)

Bethesda, Md. (January 30, 2017) – Capital One announced today that it served as lead arranger and bookrunner for a $534.9 million loan used to acquire a portfolio of 34 medical office buildings—one of the largest medical office building purchases of 2016. The borrower is a subsidiary of Starwood Property Trust (NYSE: STWD), an affiliate of Starwood Capital Group.

The buildings, with a total 1.9 million square feet, are located in California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, New Jersey, New York, North Carolina, Tennessee and Texas.

“This diverse, geographically-dispersed medical office building portfolio includes on- and off-campus locations as well as single and multi-tenanted properties,” said Erik Tellefson, Managing Director of Capital One Healthcare. “The Capital One team delivered timely financing on this complex transaction—closing in a little more than 60 days from signing of the term sheet.”

“This strategic acquisition provides us with a safe, resilient income stream and the opportunity to participate in the stable long-term growth of the medical office building sector,” said Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property. “We appreciate the flexibility afforded by Capital One on a transaction of this size and scale.”

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 $236.8 billion in deposits and $357.0 billion in total assets as of December 31, 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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