$125M San Diego-Area MOB Changes Hands
Preston Hollow Capital was the sole investor in the financing, which will be used for both improvements and refinancing purposes.
By Alex Ciorogar
El Centro Regional Medical Center
Dallas-based Preston Hollow Capital (PHC) has arranged a $125 million tax-exempt transaction, providing financing for the El Centro Regional Medical Center, a UC San Diego Health Care Network-affiliated municipal hospital, agency and enterprise in the City of El Centro, Calif.
The loan will be used to renovate the facility. Improvements include a new 29,000-square-foot Ancillary Service Building, expansion of the emergency department, upgrades to the medical center’s boiler room, including medical air upgrades and existing-building upgrades to meet SPC-4D seismic-compliance requirements. The loan will also refinance the existing debt. KeyBanc Capital Markets served as the underwriter, Wulff Hansen & Co. served as financial advisor and Norton Rose Fulbright served as bond counsel to the Medical Center. PHC was the sole investor on the financing.
“This transaction exemplifies how PHC can provide significant value to its municipal issuer clients by providing long-term funding for a complicated financing structure and credit,” said Charlie Visconsi, managing director of PHC, in a prepared statement. “As Preston Hollow Capital grows and diversifies its investment portfolio, we’re able to offer many similar solutions to tax-exempt issuers across all asset classes.”
Photo via Google Street View
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