NEWPORT BEACH, CA-Turning away from its usual method of raising cash, locally based Health Care Property Investors Inc. has completed a secured debt transaction valued at $83 million for a portfolio of 12 medical office buildings and physician clinics.

Some of the proceeds are being used to reduce the company’s revolving lines of credit. But most will be used to redeem the REIT’s remaining $72 million in convertible subordinated notes due Nov. 8, says Kenneth B. Roath, the company’s chairman and CEO.

Though the company usually taps the public markets for unsecured debt, “the very high rates currently available from that market prompted us to investigate secured financing options for a more effective cost of funds,” Roath said in a statement.

The loan features an average coupon of 8.12%, an all-in cost of 8.43%, a 10-year term and a 60% loan-to-value ratio, Roath adds. The REIT, which invests directly or through joint ventures in heath-care related facilities, now has an investment portfolio that consists of 424 facilities in 43 states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.