Dealmaker: JLL Facilitates $245M Healthcare Portfolio Recapitalization

JLL Capital Markets, Chicago, facilitated the $245 million recapitalization and financing of a 31-property medical office building portfolio totaling 545,813 square feet.

JLL represented Montecito Medical Real Estate, Nashville, Tenn., in the transaction and arranged the recapitalization with AEW Capital Management, Boston. Additionally, JLL represented the new ownership group to secure $176 million in acquisition financing through BMO Harris Bank, Chicago.

The institutionally managed portfolio included 27 single-tenant and four multi-tenant buildings aligned with major health systems. More than 80 percent of the assets have critical infrastructure such as ambulatory surgery centers or imaging facilities. With overall occupancy approaching 100 percent and a collective weighted-average remaining lease term exceeding 10 years, the portfolio should see stable and predictable long-term cash flow.

The assets are in 10 states in growing metros including Atlanta, Charlotte and Miami as well as secondary and tertiary markets.

Senior Managing Director Ted Flagg and Managing Director Andrew Milne led the JLL Healthcare Capital Markets team representing the seller with support from Vasili Davos, Kristina Patrk and Niema Beglari.

The team spearheading the financing efforts included JLL Senior Managing Director Daniel Turley, Managing Director Timothy Joyce and Director Anthony Sardo. Beverly Woodall and Drew Perry provided support.

“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 assets under management, which in turn grows their enterprise value,” Flagg said.