Capital One announced that it provided a $51 million loan to refinance construction debt on Ventana Medical Plaza, a 120,000-square-foot, off-campus medical office building in Tarzana, Ca. The borrower, TriStar Realty Group, is a commercial real estate firm that has assembled a diverse portfolio of commercial properties primarily in Southern California, including office buildings, medical office buildings, shopping centers, research and development parks and industrial parks.

“There has been a pressing need for a facility of this size and caliber in the Tarzana region for quite a while,” TriStar CEO Daniel Kashani said. “We appreciated the Capital One team’s resourcefulness and flexibility in providing a financing solution that met our business plan for this exciting new property.”

The building, which includes a 600-space parking garage, is the first new medical office building to open in Tarzana in more than 20 years. It is located less than half a mile from the Providence-Tarzana Medical Center, a 249-bed acute care hospital that is part of Providence St. Joseph Health. Providence St. Joseph Health is opening a 17,000-square foot surgery center in the facility, part of the 43,000 square feet it is leasing at the building. The property will also house a 63,000-square-foot cancer center, the largest center in the San Fernando Valley. Geoff Arrobio at Walker & Dunlop provided advisory services to TriStar.

“Our team has significant experience in construction takeout financing, and was able to leverage the value created by the leases above and beyond the cost to construct the building,” said Erik Tellefson, Managing Director for Capital One Healthcare. “We structured the loan to allow for future reimbursement and equity recapture as tenants take physical occupancy of the building.”