Capital One Bank served as administrative agent and joint lead arranger for a $70 million loan to fund the completion of construction of the Bay Area Regional Medical Center, an acute care hospital in Webster, TX. In addition to the construction loan, Capital One Bank provided Bay Area Regional Medical Center a $14 million asset-based revolving line of credit to fund the hospital’s working capital needs. Once the construction is complete and the hospital’s operations begin, the construction loan will convert to a conventional mortgage.
The hospital project is a strategic partnership among local physicians, Medistar Corporation, a Houston-based national healthcare property builder and developer, and Surgical Development Partners, LLC, a Nashville-based national acute care facility developer and manager.
“The Capital One Bank team provided incredible support to help us complete the construction of Bay Area Regional Medical Center,” said Dr. Michael Lyons, Chief Executive Officer, Bay Area Regional Medical Center. “Our team looks forward to working with Capital One Bank as we begin our operations in the area.”
Bay Area Regional Medical Center is located approximately 20 miles southeast of the Houston central business district. The Hospital will consist of a 372,000 square foot, nine story building and will contain 104 patient beds (94 patient beds and 10 ICU beds), expandable to 284 patient beds. The site will also include a 675-space parking garage, expandable to 900 spaces.
“We are delighted to team up again with Medistar and Surgical Development Partners and work with the exceptional physicians at the Bay Area Regional Medical Center providing additional acute care beds in this growing area of Houston,” said Todd Gordon, Managing Vice President, Commercial and Specialty Finance, Capital One Bank. “This is an exciting project for our team, and we look forward to a longstanding relationship with Bay Area Regional Medical Center.”
Capital One Bank’s Healthcare team partners with clients in the healthcare industry by providing real estate loans, enterprise term loans and revolving lines of credit to address all of their capital needs. Capital One Bank’s Commercial Business leverages a relationship-based banking model that seamlessly delivers an array of products and services including: loans and deposit accounts, treasury management services, merchant services, investment banking, international services and correspondent banking.