• Sun. Oct 1st, 2023

    JLL Arranges $1.3B Medical Office Loan Portfolio Sale on Behalf of Synovus Financial Corp

    ByNuala Hafner

    Sep 19, 2023
    JLL Arranges $1.3B Medical Office Loan Portfolio Sale on Behalf of Synovus Financial Corp

    JLL’s Capital Markets group recently acted as the exclusive advisor to Synovus Financial Corp, facilitating the sale of a $1.3 billion medical office loan portfolio to Kayne Anderson Real Estate. The portfolio comprises 106 floating-rate mortgages secured by 308 high-quality medical office properties. These properties are backed by reputable institutional investors, and approximately 35% of them are anchored by hospital systems. The overall portfolio encompasses nearly 13 million net rentable square feet and boasts a 92.3% long-term lease occupancy with an average remaining lease term of nine years.

    Synovus Financial Corp sees this sale as an opportunity to improve its financial position. By divesting from the medical office sector, the bank expects to pay off higher-cost wholesale funding, thus enhancing its net interest margin and wholesale funding ratio. Additionally, reducing risk-weighted assets will accelerate the bank’s progress towards targeted capital levels.

    Kayne Anderson Real Estate, as a prominent investor in medical office properties, seized the chance to rapidly evaluate and execute the acquisition. David Selznick, Chief Investment Officer at Kayne Anderson Real Estate, considered this transaction as an ideal opportunity to expand their real estate debt platform.

    The sale of Synovus’ medical office portfolio demonstrates that liquidity remains robust for secondary loan assets, particularly for high-quality portfolios. Will Sledge, Co-Head of JLL’s Loan Sales team, emphasized the success of this transaction in highlighting the demand for such offerings.

    JLL’s Capital Markets advisory team played a crucial role in this transaction, consisting of members from the Loan Sales and M&A teams. The team’s expertise and integrated approach enabled the successful completion of the sale.

    JLL Capital Markets is renowned for its global capital solutions for real estate investors and occupiers. With offices in nearly 50 countries, the group’s extensive market knowledge and global network allow them to deliver top-notch solutions across various real estate sectors.

    Overall, the sale of Synovus’ medical office loan portfolio demonstrates the strength of the market for high-quality secondary loan offerings. It also showcases the success achieved through the combined efforts of an integrated M&A and product specialist advisory team.

    Kayne Anderson Real Estate: A leading real estate investment firm managing over $14 billion in assets under management. Their expertise spans across various real estate sectors, including medical office, seniors housing, student housing, multifamily housing, and self-storage.

    Synovus: A Georgia-chartered, FDIC-insured bank that offers a range of commercial and consumer banking services, with specialization in private banking, treasury management, wealth management, and mortgage services.

    JLL: A global commercial real estate and investment management company with a presence in over 80 countries. Their mission is to shape the future of real estate for a better world.

    Source: JLL (no URL provided)