Kaufman Hall Selected Financial Advisor To Securing Debt Financing Of Nine Building MOB Portfolio Located In Florida And Georgia

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Kaufman Hall & Associates, LLC (“Kaufman Hall”) was selected as the exclusive financial advisor to AW Property Co. (“AW”) related to securing debt financing for the acquisition of a nine-building, 348,416 square foot medical office portfolio located in Georgia (“Georgia Portfolio”) and a previously acquired two-building, 33,154 square foot medical office asset unencumbered by debt located in Florida (“Florida Asset”).

The eleven on- and off-campus medical office buildings spanning 381,570 square feet are a mix of core, core-plus, and value-add assets.  Much of the Georgia Portfolio is affiliated with a dominant, physician-owned, multi-specialty clinic in the region. AW acquired the Georgia Portfolio on an off-market basis through an existing relationship.

Kaufman Hall’s Role

On behalf of AW, Kaufman Hall undertook a competitive process to secure debt financing for the Georgia Portfolio and the Florida Asset.  Kaufman Hall approached a diverse pool of debt providers that had prior medical office building experience or were seeking entry into the sector.  Based on Kaufman Hall’s efforts, AW’s track record, and the quality of the opportunity, attractive proposals were received from debt providers, despite a challenging capital markets environment. Ultimately, AW selected a well-established national commercial bank as the lender.

About the Companies Involved

Kaufman Hall

For more than 30 years, Kaufman Hall has provided independent, objective insights to assist clients in fulfilling their missions, achieving their goals, and tackling their toughest problems. Kaufman Hall’s real estate practice provides transaction advisory services to many of the nation’s top healthcare providers and developers/investors of healthcare real estate. Kaufman Hall’s focused model provides clients with an unmatched level of relevant experience & independent transaction analysis, structuring and execution capabilities. Kaufman Hall’s real estate practice was launched in 2021 through the acquisition of Healthcare Real Estate Capital (HRE Capital). Providing both consultative and transaction-oriented services, including asset/portfolio joint venture structuring, recapitalizations, dispositions and other related real estate advisory services, the real estate practice has been involved with more than $15 billion of sector-specific real estate transactions across the United States since 2008.

AW Property Co.

AW is a real estate investment and operating company that specializes in medical office buildings in major markets throughout the Southeast United States.  Since 2005, AW has sponsored healthcare real estate investments with an aggregate market value of $800 million, constituting 3.3 million square feet of rentable space in fourteen distinct submarkets.  Headquartered in in North Palm Beach with regional offices throughout the Southeast, AW has a highly dedicated, customer-focused team of professionals with expertise in all facets of real estate acquisitions, redevelopment, finance, operations and asset management.

 

Source: HREI

Big Sky Secures $190M Financing For Ten Healthcare Properties Across Four States

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JLL Capital Markets just announced that it has arranged approximately $190 million acquisition financing for ten healthcare properties totaling 857,779 square feet.

JLL worked on behalf of the borrower, Big Sky Medical Real Estate, in securing the five-year, floating-rate loan from a bank syndication led by Capital One Healthcare.

“Despite a challenging environment, our team and JLL persevered and successfully syndicated this loan to close out a successful 2022 for Big Sky’s partnership with GFH,” said Jason L. Signor, founder and CEO of Big Sky Medical. “We value our relationships with Capital One and the syndication group.”

The properties, which are collectively 87% occupied, serve a wide range of healthcare uses, including outpatient medical office buildings, ambulatory surgery centers, diagnostic imaging centers and more. The portfolio includes:

• Pyramids North, 9201 North Central Expressway, Dallas, Texas
• Pyramids South, 9101 North Central Expressway, Dallas, Texas
• Providence Park, 2501 Earl Rudder Freeway, College Station, Texas
• Greenpark MOB, 7515 Main St., Houston, Texas
• Peninsula Orthopedic Associates, 1675 Woodbrooke Dr., Salisbury, Maryland
• Tidal Health Cardiology, 400 Eastern Shore Dr., Salisbury, Maryland
• Pelican Professional Center, 42388 Pelican Professional Park, Hammond, Louisiana
• Texas A&M Health Science Center, 8441 Highway 47 West, College Station, Texas
• Peak Surgical Center, 610 North Coit Road, Richardson, Texas
• Valley Ortho & River Surgical Institute, 609 East Orangeburg Avenue, Modesto, California

JLL’s 2022 Healthcare and Medical Office Perspective highlights that patients are moving to sunbelt states and retirement markets such as Texas, Louisiana and California at exponential rates creating more demand for medical office buildings. As a result, medical office occupancy has ticked upwards as demand intensifies in a moderate construction environment which has gradually increased rents for the 11th quarter in a row.

The JLL Capital Markets team representing the borrower was led by Managing Directors Timothy Joyce and John Chun and Director Anthony Sardo.

“We are thrilled to have the opportunity to work with the Big Sky Medical team to help capitalize this outstanding portfolio of medical office assets in diverse, high growth markets. We would like to thank the lenders for stepping up in a challenging environment and providing a great debt package for these acquisitions,” says Joyce.

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.

 

Source: JLL

CVS Considering $10B Purchase Of Oak Street Health

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CVS is reportedly looking to expand its healthcare offerings by purchasing Oak Street Health.

The acquisition would value Oak Street at more than $10 billion, Bloomberg News reported late Monday (Jan. 9), citing sources with knowledge of the matter who said talks between the two companies are ongoing. PYMNTS has reached out to both companies; CVS declined to comment and Oak Street did not reply.

The deal would further expand CVS’ move into the world of primary care. The pharmacy giant last year agreed to purchase Signify Health in an $8 billion deal.

Headquartered in Dallas, Signify has a network of 10,000 medical professionals in all 50 states and uses analytics and technology to offer in-home care to health plans, employers, physician groups and health systems.

“This acquisition will enhance our connection to consumers in the home and enable providers to better address patient needs as we execute our vision to redefine the health care experience,” said CVS Health President and CEO Karen S. Lynch. “In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”

Last year also saw the debut of CVS Health Virtual Primary Care, a virtual care solution available through a digital platform.

“The program connects CVS Health’s services, clinical expertise, and data for a more coordinated and consumer-centric health care experience,” CVS said in May 2022, adding it “enables consumers to choose care when and where they want, continuing CVS’ shift into primary care.”

The company was also considering the purchase of Cano Health, which operates primary care centers in eight states and works mostly with patients from the Medicare Advantage program.

Oak Street, founded in 2012, serves Medicare recipients and has locations in 21 states, according to its website. It specializes in preventative care, “including personalized wellness plans, integrated health services, and educational and social activities,” the website says.

And CVS isn’t alone in shifting more directly into healthcare. As PYMNTS noted in September of last year, “Big Retail” has helped usher the healthcare industry fully into the 21st century.

“For the Walmarts and the Amazons of the world, offering value care and virtual care creates a new avenue to connect payments to a broader ecosystem,” PYMNTS wrote.

To that end, Walmart joined forces with UnitedHealth Group in a deal that, among other things,  offers virtual healthcare services through a 10-year partnership. Amazon, meanwhile, announced last July that it was purchasing tech-powered primary care provider One Medical for about $3.9 billion.

 

Source: PYMNTS