Capital One Bank provided a $34 million construction loan to WH Hospital Property Company, to fund the conversion of an existing medical office building into an acute care hospital, Walnut Hill Physicians’ Hospital. The construction loan will convert into a conventional four-year mortgage loan once construction is completed and the hospital’s operations commence. In addition to the construction loan, Capital One Bank has provided the hospital’s operator, Walnut Hill Physicians’ Hospital, LLC, a $12 million revolving line of credit to fund the operator’s working capital needs upon the opening of the hospital.
The hospital project is a strategic partnership between local physicians, Medistar Corporation, a Houston-based national healthcare property builder, developer, and manager, and Surgical Development Partners, LLC, a Nashville-based national acute care facility developer and manager.
“The Capital One Bank team provided invaluable support to help us launch a new, highly functioning hospital facility, in which physicians will hold a significant leadership role,” said John Tan, MD, chairman of the board, Walnut Hill Physicians’ Hospital. “We look forward to working with the Bank as we begin to offer outstanding acute care to the North Dallas community.”
The current medical office building being converted into the hospital is located on a 2.4 acre site in northern Dallas. Demolition and construction commenced in mid-2012 and the conversion process is expected to last approximately 12 to 18 months. The hospital will consist of approximately 199,000 square feet throughout eight floors and will contain 100 beds (84 private patient rooms; 16 ICU beds), six operating rooms, five procedure rooms (Cath Labs), a full service emergency room with eight rooms, and various other diagnostic imaging and testing departments.
“We are thrilled to partner with Medistar, Surgical Development Partners, and the outstanding group of physicians involved in the Walnut Hill Physicians’ Hospital project,” said Todd Gordon, managing vice president, Commercial and Specialty Finance, Capital One Bank. “This is an exciting project for our team to be involved with given the strong leadership, highly regarded physicians involved in the project, as well as the increased access to superior healthcare services the facility will offer Northern Dallas residents.”
Capital One Bank’s Healthcare team partners with clients in the healthcare and long-term care industries by providing real estate loans, enterprise term loans and revolving lines of credit to address all of their capital needs. Capital One Bank’s Commercial and Specialty Finance Business, which serves clients through a team of more than 200 associates who have expertise in technology, healthcare, security and defense, asset based lending, rediscount finance, municipal finance and equipment leasing and finance.