Dealmaker: JLL Closes $89M in Medical, Multifamily Transactions

JLL, Chicago, closed medical asset and affordable multifamily housing deals totaling $89.1 million in Maryland and Washington.

In Columbia, Md., JLL represented Ten Acres Business Trust, Columbia, Md., when it sold the Medical Pavilion at Howard County, a 160,000-square-foot outpatient facility on the campus of Johns Hopkins Health System’s Howard County General Hospital. Welltower, Toledo, Ohio, acquired the property for $80 million.

JLL Managing Director Mindy Berman, Vice President Brannan Knott and Senior Vice President Gary Applestein represented Ten Acres Business Trust.

“This is a Class A facility on the only hospital campus in the fourth wealthiest county in the nation and carries significant anchor tenancy by Johns Hopkins Medicine,” Berman said. “The property is a highly attractive investment for the institutional market and garnered substantial core interest.”

The five-story medical facility dates to 2009 and occupies 10 acres. It includes a cancer care center and multiple surgery centers as well as surplus land suitable for development.

JLL also arranged a $9.1 million fixed-rate senior and mezzanine loan financing package through Freddie Mac’s Targeted Affordable Housing Preservation program for Teal Pointe Apartments in Vancouver, Wash. The financing included a $1.08 million mezzanine loan, the first transaction funded through Freddie Mac’s new Targeted Affordable Mezzanine Loan program.

JLL Managing Director Tim Leonhard and Senior Vice President Mary Davis of JLL arranged the financing.

“The property is in good physical condition with strong curb appeal in a popular submarket where high-tech companies are driving strong population growth and average median income increases,” Leonhard said. He noted the financing uses Freddie Mac’s new mezzanine loan program, which allows borrowers to acquire multifamily communities and to compete with conventional owners while keeping those properties affordable. “Without the additional leverage, is this case we exceeded 85 percent loan-to-value, and the very attractive economics of the Freddie Mac Mezz loan, it is highly likely that this asset would have been sold to a conventional buyer,” he said.

Built in 1985 and renovated in 2003, Teal Pointe includes eight two-story apartment buildings, a single-story clubhouse and leasing office and two detached garage buildings. It is consistently 98 percent or better occupied.