Capital One 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 University Town Center life science submarket. 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.

Blackstone is one of the world’s largest investment firms with over $430 billion in 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 provides financial services to customers across healthcare sectors, including senior housing, healthcare services, pharmaceuticals, medical devices, healthcare IT and medical offices.