JLL facilitates $245M recapitalization of 31-building healthcare portfolio
Medical office sector continues to be in high demand among investors after sustained positive performance in second quarter
NEW YORK – September 15, 2021 – JLL Capital Markets announced today that it has facilitated the $245 million recapitalization and financing of a 31-property medical office building portfolio totaling 545,813 square feet across 10 states.
JLL represented Montecito Medical Real Estate in arranging the recapitalization with AEW Capital Management (“AEW”). Additionally, JLL worked on behalf of the new ownership group to secure $176 million in acquisition financing through BMO Harris.
The institutionally managed portfolio consists of 27 single-tenant and four multi-tenant buildings that are purposely aligned with major health systems and dominant physician groups. The portfolio is primarily off-campus and 81% of the buildings feature critical infrastructure such as ambulatory surgery centers or imaging facilities. With an overall occupancy of nearly 100% and a collective weighted average remaining lease term (WALT) in excess of 10 years, the portfolio provides stable and predictable long-term cash flow.
The assets are located in metro areas that have benefitted from recent migration and population growth patterns such as Atlanta, Charlotte, Miami, and other desirable secondary and tertiary markets.
The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Director Ted Flagg and Managing Director Andrew Milne with support from Vasili Davos, Kristina Patrk and Niema Beglari.
JLL’s Healthcare Capital Markets team spearheading the financing efforts included Senior Managing Director Daniel Turley, Managing Director Timothy Joyce and Director Anthony Sardo. Support was provided by Beverly Woodall and Drew Perry.
“This is a reflection of a continuing trend we are seeing across asset classes with the sponsor electing to continue to create value and grow AUM which in turn grows their enterprise value,” Flagg said.
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 sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Montecito Medical Real Estate
Montecito Medical is one of the nation’s largest privately held companies specializing in healthcare-related real estate acquisitions and funding the development of medical real estate. Montecito is a leading resource for both medical real estate owners and healthcare providers seeking to monetize or expand their holdings. Since 2006, it has completed transactions across the United States involving more than $4 billion in medical real estate. Headquartered in Nashville, TN, Montecito has been named as a “key influencer in healthcare real estate” by GlobeSt.com and the editors of Healthcare Real Estate Insights.
About AEW
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage approximately $88.6 billion of property and securities in North America, Europe and Asia (as of June 30, 2021). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Düsseldorf, Hong Kong, Seoul, Singapore, Sydney and Tokyo, as well as additional offices in eight European cities. For more information please visit www.aew.com.
About BMO Harris Bank Commercial Real Estate
Real estate firms like yours need a banking partner with extensive products and services, a strong capital base, and the ability to fund their needs through economic cycles. BMO’s dedicated team of real estate experts is your trusted adviser, helping developers, REITs, private equity funds and institutionally sponsored firms achieve their goals. To learn more about how BMO can help, visit bmoharris.com/realestate.