JLL completes sale of 10-property MOB portfolio in NC
60% of the square footage is in the rapidly growing Charlotte MSA
PHILADELPHIA, December 5, 2019 – JLL announced today that it has closed the sale of a fully leased MOB portfolio comprising 10 outpatient orthopedic medical office buildings totaling 218,213 square feet near Charlotte and Winston-Salem, North Carolina. MBRE Healthcare and Kayne Anderson purchased the portfolio.
The portfolio is a core compilation of 10 on- and off-campus, outpatient orthopedic medical office buildings and surgery centers, 100% leased to OrthoCarolina, the 3rd largest orthopedic provider in the nation by physician count, with a weighted remaining lease term of 13 years. Three of the buildings feature ambulatory surgery centers with two operating rooms each. 60% of the properties are in the Charlotte MSA, the 23rd largest MSA in the country, with two properties located in Winston-Salem and one each in Laurinburg and Shelby. All portfolio properties are within 2.2 miles of the nearest hospital.
The JLL Capital Markets team representing the seller includes managing directors Ben Appel and Evan Kovac and directors Andrew Milne and Zachary Drozda, and senior managing director Ted Flagg.
“The marketing process yielded tremendous interest from core capital sources both public and private, which is a testament to the caliber of OrthoCarolina, and the resulting opportunity for an investor to create immediate scale to that relationship,” Appel said.
“Ownership structured an attractive lease and a desirable physician joint venture that bolstered the marketing of the assets. MBRE did a great job continuing the joint venture relationship with the physicians,” added Kovac.
JLL 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 investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About MBRE Healthcare
MBRE Healthcare is a full-service healthcare real estate company providing development, acquisition, leasing, management and strategic consulting services across the United States. As one of the largest private owners of healthcare facilities in the country, with over 18 million square feet spanning 38 states, the company creates customized real estate solutions for some of the most discerning healthcare providers in the country. MBRE Healthcare works with hospitals, health systems and physician groups to drive down real estate costs, increase tenant satisfaction, improve the patient experience and expand into new markets. Headquartered in Chicago, the company has eight regional offices located in Atlanta, Columbus, Dallas, Denver, Indianapolis, Orlando, Phoenix and Washington, D.C. For more information visit mbrehealthcare.com.
About Kayne Anderson Real Estate
Kayne Anderson Real Estate (KA Real Estate) is a leading real estate private equity investor in medical office, seniors housing, off-campus student housing and self storage. KA Real Estate has raised dedicated real estate private equity funds totaling approximately $7 billion in commitments, investing in opportunistic equity, core returns and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $31 billion alternative investment management firm (AUM as of 9/30/19) with more than 30 years of successful experience in the real estate, energy, credit and growth capital sectors.