JLL facilitates $245M recapitalization of 31-building healthcare portfolio

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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