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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

Harrison Street Acquires Portfolio Of Eleven Medical Office Buildings In Six States

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Ryan Cos. has completed the disposition of an 11-building medical office portfolio encompassing 500,778 square feet throughout Florida, Illinois, Minnesota, North Carolina, North Dakota and Wisconsin.

Harrison Street Real Estate Capital acquired the portfolio, while Ryan Cos.’ healthcare real estate management arm will continue to offer operations services. Newmark’s Healthcare Capital Markets Group represented the seller.

The portfolio includes the 24,000-square-foot Surgery Partners Valley Ambulatory Surgery Center in Saint Charles, Ill., along with a multi-use integrated service center, among others. Completed in 2019, the Saint Charles asset at 2475 Dean St. traded for $13.9 million, according to Kane County records.

The portfolio sale succeeded another medical office transaction between Ryan Cos. and Harrison Street. Last week, the latter acquired three medical facilities across suburban Milwaukee from Ryan Cos. for a total of $92.6 million, according to the Milwaukee Business Journal. The trio of assets is currently leased to The Froedtert & the Medical College of Wisconsin and Children’s Hospital of Wisconsin.

A Cross-Sector Developer

Over the past five years, Ryan Cos. has completed more than 3.1 million square feet of medical facilities nationwide, but the developer is also active across other sectors. Last July, the company teamed up with DWS Group to develop Confluence at Mesa Gateway, a speculative industrial project totaling more than 515,000 square feet in Mesa, Ariz. The six-building industrial park is slated for a mid-2022 completion.

Ryan Cos. is also on track to break ground on a 400,000-square-foot Class AA office tower in Plano, Texas. The 24-story building is already 50 percent preleased to Ryan LLC, a tax services, software and technology firm. The office tower is scheduled for completion in early 2024.

 

Source: Commercial Property Executive

AEW, Cypress West JV Buys Four-Property Medical Office Portfolio In Florida

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Newmark announced it advised on the sale of a four-property, medical office portfolio on behalf of Miami-based PrimeMed Realty, LLC (“PrimeMed”).

The portfolio totals 96,395 rentable square feet of medical office and ambulatory surgery center space located throughout the Greater Orlando and Miami areas of Florida. The properties were leased to a diverse roster of health system, physician group and specialty care provider tenants. Two of the properties are strategically located adjacent to leading health system acute-care hospital campuses.

Newmark’s Healthcare Capital Markets group, including Managing Director John Nero, Senior Managing Directors Michael Greeley and Jay Miele, Executive Managing Director Ben Appel, and Associates Ron Ott and Adam Goss, in cooperation with Vice Chairman Todd Perman, led the portfolio sale execution on behalf of the seller, PrimeMed. In addition, Newmark’s Boston-based Debt and Structured Finance group procured acquisition financing for the buyer, a joint venture between Boston-based AEW Capital Management and Cypress West Partners.

“We commend PrimeMed on the aggregation of a high-quality portfolio, which generated significant investor attention and interest given its alignment with leading healthcare providers and significant concentration within high-growth and attractive Florida markets,” said Nero.

“We were pleased with the market’s response to the portfolio investment opportunity and are excited to realize a successful transaction for PrimeMed and our investors through Newmark’s execution of a competitive process, led by John Nero,” concluded Chris Montello, Co-Founder of PrimeMed Realty, LLC.

 

Source: Newmark