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News Release: $56.1M Sale-Leaseback of Missouri Medical Office Portfolio, Represented by Newmark Knight Frank


Newmark Knight Frank Represents $56.1M Sale-Leaseback of Missouri Medical Office Portfolio

St. Louis, MO (November 12, 2019) — Newmark Knight Frank (NKF) announces the $56.1 million sale of the Jefferson City Medical Group (JCMG) Portfolio. The two medical office assets, totaling 184,181 square feet, are located at 1241 and 1225 West Stadium Boulevard in Jefferson City, Missouri.

NKF Global Healthcare Services’ (GHS) Vice Chairman Todd Perman, Senior Managing Director Dana Hamric and Associate Richard Gerakitis cooperated with Executive Managing Director Kevin McLaughlin from Newmark Grubb Zimmer in St. Louis to represent the sellers – four different ownership entities across two different properties – in the transaction. The buyer was MB Real Estate Advisors, a private, equity-backed real estate investor.

“The sale of the Jefferson City Medical Group Portfolio was unique as the assets were split into four ownership entities,” said Perman, who heads up NKF’s GHS practice group. “NKF engaged in separate negotiations with each ownership group to ensure that the result was a disposition and subsequent creative lease structure that was a win-win for all parties. We were excited at the opportunity to help our clients reset a unique ownership structure and capitalize on the current market demand for sale/leasebacks of medical office buildings.”

In Central Missouri, this transaction was one of the largest sales of real estate owned by an independent medical group to take place in years. “There still remains very strong investor demand for institutional-quality medical office buildings; investors perceive the product type as a reliable asset class with consistent returns. As such, the healthcare real estate industry has continued to experience peak sale prices,” concluded Perman.

JCMG is one of Missouri’s largest multispecialty groups and has been serving the Jefferson City area for more than 25 years. The portfolio included JCMG’s comprehensive, state-of-the-art medical building and the adjacent Orthopedic Center, featuring a full-service laboratory, outpatient surgery center, open MRI linear accelerator, 64-slice CT, x-rays, DEXA scans, ultrasound, nuclear medicine and fluoroscopy.

“JCMG Building LLC engaged NKF to evaluate the group’s real estate options. This involved an extensive effort to try to align the needs of our medical group, its administration, and the physician owners of the real estate,” said Dr. George Carr, the President of Jefferson City Medical Group Building, LLC. “The NKF team did an excellent job in navigating us through the complex and difficult transition producing an exceptional outcome for both the group practice and the physician real estate owners.”

About Newmark Knight Frank

Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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