Capital One announced that it provided two loans totaling $311 million to recapitalize a 28-asset medical office building portfolio totaling 1.5 million square feet. The newly recapitalized borrower is a venture between an institutional investor and another joint venture between Kayne Anderson Real Estate Advisors (KAREA) and MB Real Estate (MBRE) Healthcare (KAREA/MBRE platform), which previously owned the portfolio. In addition to the principal loan, Capital One provided a loan for one property that required separate financing due to ground lease restrictions.

“The KAREA/MBRE platform has completed more than 40 transactions with Capital One,” said S. David Selznick, Kayne Anderson Real Estate Advisor’s Chief Investment Officer. “Our years of collaboration on a variety of investments gave us confidence that Capital One would be an ideal partner to develop a financing solution that aligned with our strategic plans for these assets.”

Peter Westmeyer, President and Managing Principal at MB Real Estate echoed this assessment. “There are few banks with the depth of expertise in healthcare to tackle a deal of this size and complexity,” he said. “For us, Capital One was the logical choice.”

Kayne Anderson Real Estate Advisors is a leading real estate private equity investor with dedicated equity and debt funds totaling approximately $5 billion in commitments. Kayne Anderson’s strategic joint venture with MBRE is one of the largest owners of medical office buildings in the United States. MBRE Healthcare, which owns and/or manages over 10 million square feet of medical office space, will manage the portfolio.

”Our goal was to provide to provide common ground, allowing the institutional investor to enter the medical office building market while addressing the need of Kayne Anderson and MB Real Estate to recapitalize the portfolio,” said Erik Tellefson, Managing Director for Capital One Healthcare. “We worked closely with all parties to provide a financing solution that served everyone’s interests.”

The 28 medical office buildings in the portfolio are located in 11 states and serve a diverse group of 150 tenants. Six buildings are on or adjacent to a health system campus, while the remaining properties are off campus. Eight of the buildings are each occupied by a single tenant. The portfolio is 95 percent leased.