Capital One Provides $182 Million Loan to BioMed Realty for Modernization and Conversion of Office Portfolio to Life Science

December 3, 2019

Source: Capital One

Capital One announced today that it closed a $182 million loan to finance substantial improvements for a four-building, 288,000 sq. ft. office campus in San Diego’s University Town Center by BioMed Realty, a Blackstone portfolio company. Funding includes a holdback for the redevelopment currently underway, led by the conversion of certain office space to laboratory/life science use and the addition of a variety of Class A amenity features serving the entire campus. Currently, the properties are 94% leased to laboratory/life science and office tenants, the majority of which are or will be using the properties as their respective corporate headquarters.

“Thanks to the expertise in the life sciences asset class we’ve gained over the years, we were able to structure the loan to accommodate the conversion over the loan term,” said Erik Tellefson, Managing Director, Capital One Healthcare. The two-year interest-only adjustable rate loan has three one-year extensions.

The four-property portfolio is located in San Diego’s premier University Town Center life science submarket. Because of their proximity to top research universities and San Diego’s venture capital network, BioMed’s investment in capital expenditures and laboratory improvements will create an attractive asset with high income potential. Once renovations are complete, the buildings will consist of flexible state-of-the-art office/lab spaces as well as ample parking, outdoor gathering areas, a fitness center, and a cafe. San Diego is one of the largest biotech clusters in the world with over 14.9 million square feet of dedicated life science real estate.

Blackstone is one of the world’s largest investment firms with over $430 billion of assets under management in the United States, Europe, Asia, and Latin America. In 2016, Blackstone acquired BioMed Realty, the second-largest commercial owner and operator of high-quality life science real estate comprising over 11 million square feet in the leading innovation markets throughout the United States and United Kingdom.

“We have worked with Capital One on a number of successful financing transactions this year,” said John Lu, Executive Vice President and Chief Financial Officer of BioMed Realty. “They have provided flexible financing solutions that help advance our business plan. We thank Capital One for their continued support of BioMed’s platform.”

Capital One Healthcare is a leading provider of financial services to the industry. Customers across healthcare sectors — including senior housing, healthcare services, pharmaceuticals, medical devices, healthcare IT and medical offices — rely on Capital One Healthcare to finance acquisitions, refinance existing debt, support working capital needs and fund growth initiatives. With in-depth expertise, our team of professionals creates solutions tailored to meet the needs of our customers. Additional information can be found at capital.one/healthcare.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $257.1 billion in deposits and $378.8 billion in total assets as of September 30, 2019. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.