Capital One Arranges $58M Refi for MOB Portfolio in Houston

By IvyLee Rosario

CNL Healthcare Properties has secured $57.6 million to refinance a two-building health-care portfolio in Houston. Capital One arranged the adjustable-rate loan, in which the proceeds will be used to refinance existing debt and recapture equity. 

The portfolio comprises a 126,000-square-foot, four-story orthopedic and spine surgery hospital—which offers 64 licensed beds and 10 operating rooms—and an adjacent 102,000-square-foot, two-story medical office building. The properties were both constructed in 2007. CNL Healthcare purchased the buildings in 2014. Hermann Health Systems leases 100 percent of the surgical center and almost half of the office property. 

“We were able to develop a financing solution for this mixed portfolio that aligns with the company’s business plans and their overall portfolio debt strategy,” said Erik Tellefson, managing director of Capital One Healthcare, in prepared remarks. “We have a long-standing relationship with the team at CNL Healthcare Properties and look forward to continuing to work with them.”

Last December, Capital One Healthcare provided a $44.4 million acquisition loan for the purchase of a medical office building portfolio in N.C. The borrower was a partnership between Heitman and Montecito Medical.