Capital One Bank announced that it served as lead arranger, administrative agent and bookrunner for loans totaling $150.6 million for the acquisition of nine Class A medical office buildings in North Carolina and Georgia. The buyer was CNL Healthcare Properties Inc., a Florida-based real estate investment trust (REIT) that focuses on acquiring and developing properties in the senior housing and healthcare sectors.
Five of the properties are located in and around Charlotte, North Carolina, on three Novant Health campuses. Of the remaining four, one is located in Asheville, North Carolina, on a Duke LifePoint campus, another is in Rome, Georgia at Floyd Medical Center, and two properties near Atlanta are satellite offices for Southern Regional Medical Center. Together they total 907,300 square feet of rentable space. Certain properties have ground leases that prohibit cross-collateralization. As a result, Capital One financed them through individual term loans, consolidating the remaining properties into a single loan.
“This transaction highlights the structural flexibility we offer clients across the country, as well as our capacity to accommodate a deal of this size,” said Todd Gordon, managing director, Capital One Bank. “CNL Healthcare is one of the premier organizations in the industry, and we are pleased they turned to us for financing.”
CNL Healthcare Properties is one of the largest third-party owners of medical office buildings, acute care and post-acute care medical facilities in the United States. The acquisition also increases the size of the company’s portfolio to approximately 100 assets, including healthcare facilities and senior housing communities.
“The Capital One team demonstrated a sophisticated understanding of the strategic importance of medical office buildings in our portfolio and the financing challenges such investments can often have,” said Joseph T. Johnson, senior vice president and chief financial officer of CNL Healthcare Properties. “Their expertise was an important factor in our ability to complete this complex transaction by our deadline.”
Capital One Bank’s Healthcare team provides a wide array of banking and lending solutions to the healthcare marketplace, including real estate loans, enterprise term loans and revolving lines of credit to address 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.