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News release


Jones Lang LaSalle Secures Credit Tenant Lease Financing for Santa Monica Medical Building

51,343-square-foot building leased to the Regents of the University of California

LOS ANGELES, CA, Sept. 24, 2013— On behalf of their client Montecito Medical, Jones Lang LaSalle’s Capital Markets experts today announced the firm has structured a Credit Tenant Lease (CTL) financing for the acquisition of a 51,342-square-foot outpatient surgery and oncology treatment facility located at 1217-1231 16th Street in Santa Monica, California, directly across the street from the UCLA Santa Monica Medical Center.  The fixed-rate, 29-year loan for the property, which is fully leased to the Regents of the University of California through 2042, carries an interest rate of 4.627 percent.  Montecito Medical acquired the property for $54.7 million.

Executive Vice Presidents Brion Haist and Bill Cavagnaro led the Jones Lang LaSalle team on this transaction, while Executive Managing Director Tom Fish, Executive Vice Presidents Reid McGlamery and Keith Largay and Associate Austin Johnson assisted in the execution.

“Not only did Jones Lang LaSalle secure optimal financing for our acquisition of this prime outpatient facility, the team also created intrinsic value by working closely with us to align the financing with the structure of the lease with UCLA,” said Chip Conk, CEO of Montecito Medical.  “This highly complex financing will allow us to parlay strong tenant credit quality and medical office fundamentals into a well performing investment and we are very pleased with the outcome.”

Constructed in 2012, the three-story outpatient facility sits on a 0.69-acre site and houses an outpatient surgery center with eight operating rooms and radiation oncology treatment featuring two linear accelerators.  The outpatient facility is operated by the new 266-bed UCLA Santa Monica Medical Center, located across the street and five minutes from the Santa Monica beachfront and just 15 minutes from downtown Los Angeles.   The property is one of the first LEED® Gold certified outpatient buildings in the United States.

”This credit tenant lease financing derived its proceeds from Jones Lang LaSalle Securities, LLC’s private placement of bonds to institutional investors in the global capital markets and not from capital provided by commercial real estate lenders.  This outpatient facility was a prime candidate for this type of financing as it’s a single tenant property occupied by an investment-grade tenant under a long-term, triple-net lease,” said Haist. 

“This type of financing is a trend we expect to gain traction in the months ahead as greater numbers of healthcare investors seek savvy alternatives to conventional financing as health systems with greater employed physician populations are more likely to lease 100 percent of buildings on a long-term basis,” added Mindy Berman, Managing Director and leader of Jones Lang LaSalle’s Healthcare Capital Markets.

The Regents of the University of California is a public institution of higher education designated by the State of California in its Master Plan for Higher Education for the training of individuals for the professions, for the awarding of doctoral degrees in all fields of human knowledge, and for the conduct of research.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2012 alone, Jones Lang LaSalle Capital Markets completed $63 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $60 billion in global investment sales and buy-side transactions, equating to nearly $240 million of investment trades completed every working day around the globe. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.

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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit

Securities offered through Jones Lang LaSalle Securities, LLC a registered broker dealer and member of FINRA. 

This is not in any sense a solicitation or offer of the purchase or sale of securities.  Individual securities listed in this announcement are for informational purposes only.  This information does not constitute investment advice or recommendations with respect to the securities discussed.