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News Release: Governor Henry McMaster Signs Certificate of Need Repeal

News Release: Governor Henry McMaster Signs Certificate of Need Repeal

By on October 3, 2023

COLUMBIA, S.C., Oct. 3, 2023 – Governor Henry McMaster and Lieutenant Governor Pamela S. Evette today were joined by state agency leaders, members of the General Assembly, and others for a ceremonial bill signing of S. 164, Certificate of Need Repeal, which eliminates the requirement for most healthcare facilities to obtain a Certificate of Need (CON) from the Department of Health and Environmental Control before building a new facility, purchasing certain medical equipment or providing additional medical services.

“South Carolinians will have greater access to affordable healthcare services with the repeal of the Certificate of Need laws,” said Governor McMaster. “Everyone benefits when the proven power of the free market is unleashed in our state.”

In May of 2022, Governor McMaster wrote a letter to the General Assembly calling for the repeal of CON.

“For the state of South Carolina to have had a Certificate of Need program that creates many monopolies throughout this state was wrong, and it needed to be fixed,” said South Carolina Senator Harvey Peeler. “I’m proud of this law and proud of the work our Senators, House members, and the governor have done, and it’s another example of the governor’s motto, ‘South Carolina is open for business.'”

A CON will continue to be needed for new hospital construction or the expansion of hospital beds until January 1, 2027, with exemptions for the relocation of a hospital in the same county, construction of a new hospital of up to 50 beds in a county currently without a hospital, or the merger or acquisition of a hospital.

Nursing home facilities and home health agencies will continue to be required to obtain a CON.

“This is a tremendous day for patients all across South Carolina,” said South Carolina Senator Wes Climer. “As a consequence of repealing Certificate of Need, patients will have more choices, will have lower costs, and the people assembled here today worked together to do that not by spending more money, not by creating new programs but by getting government out of the way to unleash the private sector to invest and compete.”

The bill also creates the Certificate of Need Study Committee tasked with providing a report to the General Assembly that includes recommendations to improve rural healthcare access and to address any trends associated with the decrease in the quality and quantity of access to healthcare in rural areas.

“This new law protects the citizens of South Carolina by providing more timely, more accessible, and more affordable healthcare,” said South Carolina Representative Sylleste Davis.”However, we still have work to do. Through the course of our discussions, it became evident that we need to examine the healthcare model in our rural areas and explore new and better ways to make cost-effective healthcare available to South Carolinians. Today is a massive step in the right direction, but our best work is yet to come.”

The Medical University of South Carolina must submit details of proposed acquisitions of new hospital facilities to the Joint Bond Review Committee, receive approval from the Fiscal Accountability Authority, and apply for a Certificate of Need.

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News Release: BioMed Realty Appoints Marie Lewis as Executive Vice President and General Counsel

By on October 3, 2023

The promotion highlights Ms. Lewis’ decade of commitment to the Company’s success and further strengthens the Company’s executive leadership team

October 03, 2023 09:00 AM Eastern Daylight Time

SAN DIEGO–(BUSINESS WIRE)–BioMed Realty, a leading provider of real estate solutions to the life science and technology industries, announced the appointment of Marie Lewis to Executive Vice President and General Counsel.

Ms. Lewis joined the company in 2013 as Managing Attorney for the Real Estate Legal Department. During her tenure, Ms. Lewis has taken on increasing levels of responsibility and has been instrumental to BioMed Realty’s growth and success, playing a critical role in many significant transactions that have shaped the Company’s expanding footprint. In February 2022, Ms. Lewis joined the executive team when she became responsible for the Integration and Communications functions, and she has also acted as interim General Counsel since early 2023. Ms. Lewis was appointed Executive Vice President and General Counsel effective October 1, 2023, and will be responsible for the Company’s Legal, Integration and Communications functions.

“This promotion affirms the impact that Marie has had on the BioMed Realty franchise over the past decade,” said Tim Schoen, CEO of BioMed Realty. “Marie’s continued dedication to excellence, her passion for the Company’s vision, and her talent as a committed mentor and leader have laid the groundwork for her success at the Company. I am confident she will bring the same commitment to her newly expanded role.”

Ms. Lewis has a rich history of real estate industry experience, having joined BioMed Realty from Sempra Energy, where she held the role of Managing Attorney, Real Estate. Prior to Sempra Energy, she was an associate at Gibson, Dunn & Crutcher LLP. Ms. Lewis graduated cum laude from Loyola Law School in Los Angeles and clerked for Judge William J. Rea in the Central District of California.

About BioMed Realty

BioMed Realty, a Blackstone portfolio company, is a leading provider of real estate solutions to the life science and technology industries. As of June 30, 2023, BioMed Realty owned and operated high quality life science real estate comprising 16.7 million square feet concentrated in leading innovation markets throughout the United States and the United Kingdom, including Boston/Cambridge, San Francisco, San Diego, Seattle, Boulder and Cambridge, U.K. In addition, the Company maintains a premier development platform with 3.3 million square feet of Class A properties in active construction in these core innovation markets to meet the growing demand of the life science and technology industries. To learn more about BioMed Realty, visit biomedrealty.com and follow the company on X @biomedrealty.

Contacts

Media:
Maria Huntalas
Vice President, Corporate Communications & Marketing, BioMed Realty
858-207-5859
maria.huntalas@biomedrealty.com

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News Release: Loyola Medicine Burr Ridge outpatient medical center trades for $59.95M in suburban Chicago

By on October 3, 2023

Sila Realty Trust acquires the Class A medical property in Illinois

 

BOSTON Oct. 3, 2023 –  JLL Capital Markets announced today that it arranged the $59.95 million sale of Loyola Medicine Burr Ridge, an outpatient health center totaling 104,912 square feet in Burr Ridge, Illinois.

JLL represented the seller, Healthcare Realty Trust, and procured the buyer, Sila Realty Trust.

The three-story property was built in 2010 and is fully leased and occupied by Loyola University Medical Center. The Chicago academic medical center is an affiliate of the large national health system, Trinity Health, and is one of the most prominent and highly awarded health systems in Illinois. Loyola Burr Ridge is Loyola’s largest ambulatory care location and is home to the most advanced specialties and services in orthopedics, cancer care, neurology, cardiology, dermatology and more with academic faculty physicians.

Burr Ridge is an affluent village situated just 20 miles southwest of downtown Chicago. The facility is highly visible and accessible at an interchange of Interstate 55 which provides easy access to downtown Chicago. The property benefits from proximity to Loyola Medicine’s two largest hospitals including the flagship 547-bed Loyola University Medical Center and the 374-bed MacNeal hospital, both approximately eight miles from Burr Ridge.

The JLL Capital Markets Investment Sales and Advisory team was led by Senior Managing Director Mindy Berman, Senior Directors Sam DiFrancesca and Pat Shields and Analyst Matt Sykes.

“Real estate investors have keen interest in outpatient medical properties with major healthcare providers that offer advanced specialty care to patients close to their homes,” says Berman. “Loyola’s sizeable investment in infrastructure at this location means its tenancy should continue for a long time.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

About Healthcare Realty Trust

Healthcare Realty is a publicly-traded Real Estate Investment Trust (REIT) that focuses on owning, managing, acquiring and developing outpatient medical facilities throughout the United States. As the first REIT to specialize in medical office buildings, the Company has built a well-regarded medical real estate portfolio affiliated with market-leading healthcare systems.

 

About Sila Realty Trust

Sila Realty Trust, Inc. is a public, non-listed real estate investment trust headquartered in Tampa, Florida, that invests in high-quality properties leased to long-term tenants capitalizing on critical and structural economic growth drivers. The Company is primarily focused on investing in healthcare assets across the continuum of care, with an emphasis on lower cost patient settings, which generate predictable, durable and growing income streams. As of June 30, 2023, the Company owned 132 real estate properties and two undeveloped land parcels located in 59 markets across the United States.

 

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

 

 

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News Release: Alexandria Real Estate Equities, Inc. Announces Accelerated Delivery of Moderna’s New 462,100 RSF HQ and R&D Center

By on October 3, 2023

Alexandria Real Estate Equities, Inc. Announces Accelerated Delivery of Moderna’s New 462,100 RSF HQ and R&D Center, Designed to Be the Most Sustainable Laboratory Building in Cambridge, at 325 Binney Street on the One Kendall Square Mega Campus

NEWS PROVIDED BY Alexandria Real Estate Equities, Inc.

03 Oct, 2023, 08:30 ET

Alexandria earned the 2023 Visionary Award from the Cambridge Chamber of Commerce for developing 325 Binney Street, which will support Moderna as it advances a pipeline of mRNA medicines that leverage its paradigm-shifting mRNA technology — the platform behind the company’s lifesaving COVID-19 vaccine

325 Binney Street on the Alexandria Center® at One Kendall Square mega campus in Cambridge, MA. Courtesy of Alexandria Real Estate Equities, Inc.

PASADENA, Calif. and CAMBRIDGE, Mass., Oct. 3, 2023 /PRNewswire/ — Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative life science, agtech and advanced technology mega campuses in AAA innovation cluster locations, today announced that it has accelerated delivery of 325 Binney Street to Moderna, with which it has had a longstanding strategic relationship for over a decade. The 462,100 RSF Class A+ property currently under construction is now set to deliver in November 2023. Ideally located on the Alexandria Center® at One Kendall Square mega campus in Cambridge, the state-of-the-art facility was selected by Moderna for its new global headquarters and core R&D operations and will support Moderna’s growth as it makes progress on a pipeline of mRNA medicines that leverage its paradigm-shifting mRNA technology to address a wide range of diseases, including COVID-19. This mission-critical development project, which is also expected to be delivered under budget, will significantly contribute to Alexandria’s incremental annual net operating income (NOI) commencing in 4Q23. As of June 30, 2023, the company’s highly leased value-creation pipeline is expected to drive future annual incremental NOI aggregating $605 million through 2Q26.

“We value our longtime strategic relationship with Alexandria, and it has been a privilege to work with their team to develop our new HQ and science center, designed to be the most sustainable laboratory building in Cambridge,” said Jamey Mock, chief financial officer of Moderna. “As we continue to innovate and grow our world-class mRNA platform, our future home will enable us to keep delivering on the promise of mRNA science and retain and recruit the best talent from the Massachusetts life science sector while also minimizing our environmental footprint.”

325 Binney Street, which is targeting LEED Zero Energy, LEED Platinum Core & Shell, Fitwel Life Science and WiredScore Platinum certifications, integrates leading-edge laboratory and non-scientific space with engaging gathering spaces to foster collaboration and disruptive innovation. The ultra-efficient building is targeting a 92% reduction in fossil fuel use through the implementation of a geothermal system and 100% renewable electricity to result in an estimated 97% emissions reduction. Alexandria also incorporated numerous wellness features in the project, including walking paths and open outdoor areas, to promote physical and mental well-being.

Laboratory space at 325 Binney Street on the Alexandria Center® at One Kendall Square mega campus in Cambridge, MA. Courtesy of Alexandria Real Estate Equities, Inc.

Additionally, Alexandria received the Cambridge Chamber of Commerce’s 2023 Visionary Award for developing this highly sustainable and inspiring facility for Moderna. The chamber’s annual awards recognize innovators from the business, institutional and non-profit communities that are effecting change and making an extraordinary positive impact on people’s lives in Cambridge and beyond.

“Moderna is an exceptional example of a transformative company that has grown with Alexandria over many years, and we are immensely proud to have been able to accelerate delivery of their mission-critical infrastructure at 325 Binney Street,” said Hunter L. Kass, co-president and regional market director – Greater Boston of Alexandria Real Estate Equities, Inc. “We are also honored to receive a Visionary Award from the Cambridge Chamber of Commerce for developing a dynamic workspace that will support Moderna’s tireless efforts in the continued fight against COVID-19, as well as their mission to deliver the greatest possible impact to people through mRNA medicines.”

About Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative life science, agtech and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle. Alexandria has a total market capitalization of $30.6 billion and an asset base in North America of 74.9 million SF as of June 30, 2023, which includes 41.1 million RSF of operating properties and 5.3 million RSF of Class A/A+ properties undergoing construction, 9.4 million RSF of near-term and intermediate-term development and redevelopment projects and 19.1 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value. For more information on Alexandria, please visit www.are.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the estimated delivery time and budget with respect to 325 Binney Street; Moderna’s use of 325 Binney Street; potential impacts of 325 Binney Street and Alexandria’s partnership with Moderna on the development of new medicines, Alexandria’s financial results, and Moderna’s business, operations and workforce; and LEED and healthy building certifications and targeted efficiencies. These forward-looking statements are based on Alexandria’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by Alexandria’s forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and Alexandria assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in Alexandria’s forward-looking statements, and risks and uncertainties to Alexandria’s business in general, please refer to Alexandria’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.

CONTACT: Sara Kabakoff, Senior Vice President – Chief Content Officer, (626) 788-5578, skabakoff@are.com

SOURCE Alexandria Real Estate Equities, Inc.

News Release: Alexandria Real Estate Equities, Inc.’s Solid Baa1 Credit Rating With Stable Outlook Affirmed by Moody’s

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News Release: New Class-A medical and research facility is the first to be delivered in West Los Angeles in over two decades

By on October 2, 2023

FOR IMMEDIATE RELEASE

Stockdale Capital Partners’ Newest Development, 656 S. San Vicente Boulevard, Brings 145,000 Square Feet of State-of-the-Art Medical and Life Sciences Space to L.A.’s Golden Triangle

LOS ANGELES – October 2, 2023 – Los Angeles-based Stockdale Capital Partners (Stockdale) announces its highly-anticipated new medical office and life sciences development in L.A.’s Golden Triangle. The new project, 656 S. Vicente Boulevard, will be located at the prominent intersection of San Vicente and Wilshire Boulevards and will be the first new medical and life sciences building constructed in the area in more than 20 years.

The LEED® Gold-certified, 12-story project will offer 145,000 square feet of unparalleled class-A medical office and life sciences space that combines both environmental sustainability and best-in-class amenities. With much of the medical office and research spaces in the surrounding area built prior to the start of the current century, 656 S. San Vicente Boulevard brings sustainability and modernity to the aging health care real estate market in West Los Angeles – an area that has been historically underserved, with outdated medical office and life sciences facilities.

“Our new 656 S. San Vicente Boulevard project is specifically designed to accommodate the advanced technology and equipment necessary to perform cutting-edge procedures in an outpatient setting, and this highly specialized environment is not easily replicated in the older building stock of the West Los Angeles office markets,” said Andrew Saba, Managing Director of Stockdale Capital Partners. “In addition to modern medical space that offers unparalleled amenities for both patients and physicians, 656 S. San Vicente Boulevard will also feature state-of-the-art laboratory space capable of serving the needs of leading researchers in a supply-constrained life sciences market.”

The anticipated core-and-shell completion date for the project is October of 2026, and CBRE’s Angie Weber and Dana Nialis will be managing all leasing offerings associated with the project.

“The seamless integration of specialized medical and life sciences spaces into a single building defined by environmental sustainability and community access is unprecedented in West Los Angeles,” said Angie Weber, First Vice President with CBRE’s LA-based health care leasing team. “656 S. San Vicente Boulevard will set a new standard for modern health care spaces – it will be a true hub for leading-edge health care services and one of the most preeminent medical buildings in Greater Los Angeles.”

Stockdale is partnered with Atelier R and HMC for architectural and design services to integrate key sustainability features into its San Vicente project, all designed to minimize its environmental footprint and contribute positively to the local community and its stakeholders. Jones Lang LaSalle’s construction management team will support pre-con and consulting services through the design and construction phases. Notable building features and amenities include an integrated solar framework capable of offsetting building energy usage, the use of recycled building materials designed to maximize energy efficiency, high-efficiency heating and cooling systems, low-water usage plumbing and mechanical systems, drip irrigation, extensive green space, and interior and exterior gardens to help optimize air quality throughout the building.

The 656 S. San Vicente Blvd. project will also offer solutions to address accessibility and parking challenges in the surrounding area. The building features dedicated electric vehicle charging stations and ample bicycle parking, as well as direct access to a major transit thoroughfare with multiple rapid bus lines and the new Purple (D Line) extension station planned at Wilshire/La Cienega, which is scheduled to open in 2027. Additionally, Stockdale incorporated 418 parking spaces into the building design, all with full valet service for tenants and patients needing additional accessibility accommodations and convenient access to the building.

To view floorplans and 3D virtual tours of Stockdale Capital Partner’s 656 S. San Vicente Blvd. project, please visit www.656southsanvicente.com. For all leasing inquiries, please contact CBRE’s Angie Weber at angie.weber@cbre.com.

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ABOUT STOCKDALE CAPITAL PARTNERS

Stockdale Capital Partners is a vertically-integrated real estate investment firm with a 30-year history of investing in commercial real estate across multiple asset classes throughout the Western United States. The company is an owner-operator specializing in the redevelopment and repositioning of real estate assets with expertise in revitalizing urban properties of all types. The firm currently manages approximately $2.8 billion in gross AUM on behalf of several joint ventures and discretionary funds. For more information, please visit our website at www.stockdalecapital.com

ABOUT CBRE GROUP, INC.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com

Contact: David Gershwin
david@davidgershwin.com
323.791.2319

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News Release: Inspira Health Unveils Inspira Medical Center Mannington

By on October 2, 2023

The integration of Salem Medical Center, an affiliate of Inspira Health is now complete, marking the health system’s expansion with a fourth hospital in South Jersey by rebranding as IMC Mannington

 

SALEM, N.J., Oct. 2, 2023 –(BUSINESS WIRE)—Inspira Health announced that the integration Salem Medical Center, an affiliate of Inspira Health, into the health system is complete, as of October 1. The hospital has been rebranded as Inspira Medical Center (IMC) Mannington, effective immediately. Services at IMC Mannington include Bariatric; Behavioral and Mental Health; Cardiology; Emergency; Gastroenterology; Orthopedics; Surgical Services; Urology; and Wound Care.

“The finalization of this integration marks a significant milestone for our entire health system and community as Inspira Medical Center Mannington officially becomes part of the Inspira Health family,” said Amy Mansue, President and Chief Executive Officer at Inspira Health. “Our combined expertise and dedication will enable us to deliver high-quality patient care and empower healthier communities as one collective team.”

For more than 70 years, Inspira has been steadfast in its commitment to providing safe, high-quality care to the residents of Salem County. IMC Mannington represents a seamless extension of this legacy, dedicated to offering the latest medical innovation and evidence-based care that helps each patient achieve the best possible health outcome.

“This integration stands firmly on the pillars of our shared mission, vision and values,” said Lydia Stockman, RN, MHA, FACHE, Senior Vice President and Chief Administrative Officer, Inspira Medical Centers. “Last December, we began the integration of Salem into our health system and over that time, we’ve gained a better understanding of the needs of the staff at Salem and the community in which they serve. With this transition, our medical staff and health care practitioners are equipped to enhance the quality, safety and patient experience to all those we serve.”

“With Inspira Medical Center Mannington, we stand on the threshold of an exciting new era of health care in the region,” said Warren E. Moore, FACHE, Executive Vice President, Chief Operating Officer at Inspira Health. “Together, we will redefine the standard of excellence in health care delivery for our neighbors today and for generations to come.”

For more information about Inspira Medical Center Mannington, please visit https://www.inspirahealthnetwork.org/.

About Inspira Health

Inspira Health is a charitable nonprofit health care organization and a regional leader in physician training, with approximately 277 medical residents and fellows in 15 nationally accredited programs at its hospitals in Elmer, Mullica Hill and Vineland.

The system traces its roots to 1899 and comprises four medical centers, two comprehensive cancer centers, eight multi-specialty health centers, and locations throughout South Jersey. These include urgent care; outpatient imaging and rehabilitation; sleep medicine labs; cardiac testing facilities; behavioral health, digestive health and wound care centers; home care and hospice; and more than 35 primary and specialty physician practices in Gloucester, Cumberland, Salem, Camden and Atlantic counties. Additionally, Inspira EMS services six South Jersey counties.

Inspira’s 1,200-member medical staff and more than 7,000 employees provide an unwavering commitment to delivering a superior patient experience at every point of the journey. Technology and innovation investments provide a robust provider directory and a range of services, including online scheduling and virtual visits for both primary and specialty care providers. With a commitment to multi-channel digital access, Inspira is able to meet consumer demand for self-service and personalized care options.

Accredited by DNV Healthcare and committed to the principles of high reliability, Inspira Health is focused on clinical excellence and patient safety. For more information about Inspira Health, visit http://www.InspiraHealthNetwork.org or call 1-800-INSPIRA.

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News Release: The Sanders Trust Breaks Ground on Inpatient Rehabilitation Hospital

By on October 2, 2023

Groundbreaking for 66,000-sq. ft. Facility in Youngstown, Ohio

Birmingham, Ala. – The Sanders Trust, one of the nation’s leading healthcare real estate investment and development companies, is pleased to announce the recent groundbreaking for Mercy Health Youngstown Rehabilitation Hospital located in Youngstown, Ohio. The groundbreaking took place on August 31, 2023.

The Sanders Trust was selected as the developer of the 66,000-sq. ft. hospital that will include 60 beds. The hospital will focus on acute rehabilitation for patients who suffer from stroke traumatic brain injury, spinal cord injury, complex neurological disorders, orthopedic conditions, multiple trauma, amputation and other injuries or disorders.  

The project is a joint venture between Lifepoint Rehabilitation, a business unit of Lifepoint Health, and Mercy Health. Lifepoint Health serves patients, clinicians, communities, and partners across the healthcare continuum. Their diversified healthcare delivery network extends from coast to coast, consisting of community hospitals, rehabilitation and behavioral health hospitals, and additional sites of care. Mercy Health is a mission-driven organization committed to making every patient’s life better — mind, body, and spirit. They are the largest health system in Ohio and one of the largest nonprofit healthcare ministries in the United States.

“The Sanders Trust is proud to collaborate with Lifepoint Rehabilitation and Mercy Health in bringing this advanced facility to the people of Mahoning Valley,” states Rance Sanders, President and CEO of The Sanders Trust. “The Mercy Health Youngstown Rehabilitation Hospital will serve as a beacon for health and wellness and is a testament to improving the lives of the communities we serve.”

The Mercy Health Youngstown Rehabilitation Hospital is located at 3180 Belmont Ave in Youngstown, Ohio. The Sanders Trust worked with Earl Swensson Architects, headquartered in Nashville, TN. Massaro Corporation was the general contractor, headquartered in Pittsburgh, PA.  

For more information about the Mercy Health Youngstown Rehabilitation Hospital or The Sanders Trust’s role in this development, please contact Krista Conlin at krista@kcprojects.net. 

 

ABOUT THE SANDERS TRUST

The Sanders Trust develops and acquires medical office buildings, inpatient rehabilitation hospitals, specialty hospitals and other mission critical healthcare facilities nationwide. Headquartered in Birmingham, Alabama, The Sanders Trust has been a recognized leader in the investment community for healthcare clients since its inception in 1989 and has developed or acquired medical properties in 30 states. For more information on The Sanders Trust, visit www.SandersTrust.com.

 

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News Release: High-profile medical office building trades for $23.3M in the greater Phoenix area

By on October 2, 2023

News release

JLL Capital Markets led sales efforts for on-campus Ironwood Medical Pavilion II in Queen Creek, Arizona

October 02, 2023

PHOENIX, Oct. 2, 2023 – JLL Capital Markets, Medical Properties Group, announced today that it arranged the $23.3 million sale of Ironwood Medical Pavilion II, an on campus 61,302 square foot medical office building in Queen Creek, Arizona, within Phoenix’s Southeast Valley.

JLL worked on behalf of the seller, a joint venture between Plaza Companies and Ryan Companies US, Inc., and procured the buyer, Hammes Partners.

Delivered in 2019, Ironwood Medical Pavilion II is 99% leased to a variety of highly specialized medical practitioners and anchored by Banner Health, Arizona’s largest health system and the largest employer in the state of Arizona. The property is located on the campus of Banner Ironwood Medical Center. Queen Creek is a rapidly growing suburb of Phoenix that has seen a substantial influx of new residents, resulting in a population forecasted to grow 76% over the next 10 years.

The JLL Capital Markets Investment Sales and Advisory team was led by Senior Managing Directors Evan Kovac, John Chun, Mindy Berman and Director Matt Dicesare, of the Medical Properties Group, and locally by Senior Managing Director Ben Geelan and Senior Director Will Mast.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

About Ryan Companies
Founded in 1938, Ryan Companies offers comprehensive commercial real estate services as a national developer, designer, builder, capital markets advisor and real estate manager with a focus on creating places for people to thrive. Ryan work spans a wide range of sectors and product types including healthcare, hospitality, industrial, mixed-use, multifamily, office, retail, and senior living. Built on the foundation of integrity, honesty and community, Ryan has grown to more than 1,800 team members in 17 offices and has completed projects in nearly every state. For more information, visit ryancompanies.com.

About Plaza Companies
Plaza Companies, based in Peoria, Arizona, is an esteemed leader in the developing and managing of medical office and commercial office properties, technology and bioscience facilities, mixed-use properties and senior housing communities. Since its founding in 1982, this full-service, specialized real estate firm has established a proud portfolio stretching across the greater Phoenix area of more than 14 million square feet in properties developed, leased or managed and valued at more than $1 billion. For more information about Plaza Companies, visit ThePlazaCo.com.

About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Alli Semans
Hotels & Hospitality and Capital Markets
+1 330 329 6750

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News Release: First Citizens Bank Extends Its Brand to Legacy CIT Business Verticals

By on October 2, 2023

RALEIGH, N.C., Oct. 2, 2023 /PRNewswire/ –– First Citizens Bank today announced that it is extending its brand to cover numerous commercial business verticals that previously fell under First Citizens’ CIT division. This effort represents another major step towards First Citizens fully integrating CIT since its 2022 merger.

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The First Citizens name and logo will be adopted by nearly all businesses within CIT’s Commercial Finance group, including Energy; Healthcare Finance; Maritime Finance; Technology, Media and Telecommunications; Aerospace, Defense and Government; Capital Equipment Finance; Asset-Based and Sponsor Finance Lending; and Commercial Real Estate, among others.

“Over many years, First Citizens Bank has built substantial nationwide recognition for its strength, stability, and banking expertise, combined with deep, long-lasting client relationships,” said Jim Hudak, president of the Commercial Finance group. “As these commercial lending businesses are fully integrated into the bank as a whole, this is the perfect time for us to adopt the First Citizens Bank name and leverage the bank’s status as a top-tier national financial institution with unmatched expertise and client focus.”

“We anticipate this alignment will simplify our go-to-market strategy and accelerate our growth trajectory, while also building our overall brand recognition,” Hudak continued. “We are already seeing increased excitement for this transition among our associates and enthusiasm from our clients as well.”

Under the First Citizens Bank name, the Commercial Finance group will build on its long-standing presence in the middle market and continue to leverage its talent, agility and industry knowledge that has long been associated with the businesses throughout CIT’s extensive 100-year history.

The transition is expected to be completed by year-end. The CIT abbreviation, which stood for Commercial Investment Trust, will remain in use in some corners of First Citizens, such as the CIT Rail division, CIT Commercial Services and the CIT Bank online bank.

About First Citizens BankFirst Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

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News Release: Medical Properties Trust Posts New Video Message to Shareholders

By on October 2, 2023

BIRMINGHAM, Ala., Oct. 2, 2023–(BUSINESS WIRE)--Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced that a new video message to shareholders has been posted to its website. In the video, Edward K. Aldag, Jr., MPT’s Chairman, President and Chief Executive Officer, describes the Company’s business model, levers for shareholder value creation, capital allocation priorities, and the reasons MPT remains a unique and compelling investment opportunity.

The full video can be found on the homepage of MPT’s website www.medicalpropertiestrust.com.

About Medical Properties Trust, Inc.

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospital real estate with 444 facilities and approximately 44,000 licensed beds in ten countries and across four continents. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “would”, “could”, “expect”, “intend”, “plan”, “estimate”, “target”, “anticipate”, “believe”, “objectives”, “outlook”, “guidance” or other similar words, and include statements regarding our strategies, objectives, future expansion and development activities, asset sales, expected returns on investments and expected financial performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the economic, political and social impact of, and uncertainty relating to, potential impact from health crises (like COVID-19); (ii) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us, especially as a result of the adverse economic impact of the COVID-19 pandemic, and government regulation of hospitals and healthcare providers in connection with same (as further detailed in our Current Report on Form 8-K filed with the SEC on April 8, 2020); (iii) our expectations regarding annual guidance for net income and NFFO per share; (iv) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (v) the nature and extent of our current and future competition; (vi) macroeconomic conditions, such as a disruption of or lack of access to the capital markets or movements in currency exchange rates; (vii) our ability to obtain debt financing on attractive terms or at all, which may adversely impact our ability to pursue acquisition and development opportunities and pay down, refinance, restructure or extend our indebtedness as it becomes due; (viii) increases in our borrowing costs as a result of changes in interest rates and other factors; (ix) international, national and local economic, real estate and other market conditions, which may negatively impact, among other things, the financial condition of our tenants, lenders and institutions that hold our cash balances, and may expose us to increased risks of default by these parties; (x) factors affecting the real estate industry generally or the healthcare real estate industry in particular; (xi) our ability to maintain our status as a REIT for federal and state income tax purposes; (xii) federal and state healthcare and other regulatory requirements, as well as those in the foreign jurisdictions where we own properties; (xiii) the value of our real estate assets, which may limit our ability to dispose of assets at attractive prices or obtain or maintain equity or debt financing secured by our properties or on an unsecured basis; (xiv) the ability of our tenants and operators to operate profitably and generate positive cash flow, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (xv) potential environmental contingencies and other liabilities; (xvi) the risk that the expected sale of three Connecticut hospitals currently leased to Prospect does not occur; (xvii) the risk that MPT’s expected sale of its remaining Australian portfolio does not occur; (xviii) the risk that MPT is unable to monetize its investment in PHP at full value within a reasonable time period or at all; (xix) the risk that other property sales, loan repayments, and other capital recycling transactions do not occur; (xx) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; and (xxi) the risks and uncertainties of litigation.

The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and as updated in our quarterly reports on Form 10-Q. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.

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News Release: Just Closed – Ironwood Medical Pavilion II | Phoenix MSA | 60K+ SF | On Campus

By on October 2, 2023

JLL Investment Advisory

JLL Medical Properties Group

Capital Markets

Just Closed: Ironwood Medical Pavilion II – Queen Creek, AZ

JLL Medical Properties Group (Capital Markets) is pleased to announce the sale of Ironwood Medical Pavilion II, a trophy 61,302 square foot medical building delivered in 2019 and is 99% leased to a variety of healthcare tenants, including anchor tenant Banner Health (S&P AA-). Banner Health is the largest health system in Arizona and is the third largest employer in the state operating over 30 hospitals.

The Property sits on the campus Banner Ironwood Medical Center in the affluent and high growth city of Queen Creek.

The JLL Medical Properties Group (Capital Markets) served as the exclusive advisor to the seller.

JLL Capital Markets

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients – whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

Press Release

Healthcare Investment Sales Advisors

Evan Kovac
Senior Managing Director
+1 206 576 0033
evan.kovac@jll.com

Mindy Berman
Senior Managing Director
+1 617 316 6539
mindy.berman@jll.com

Matt DiCesare
Director
+1 310 407 2149
matt.dicesare@jll.com

Debt and Structured Finance

John Chun
Senior Managing Director
+1 949 798 4108
John.chun@jll.com

Daniel Digerness
Director
+1 602 248 7878
Daniel.digerness@jll.com

Local Investment Sales Advisors

Ben Geelan
Senior Managing Director
+1 515 664 7259
Ben.geelan@jll.com

Will Mast
Senior Director
+1 480 332 7442
Will.mast@jll.com

Local Healthcare Leasing Expert

Pat Williams
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+1 602 282 6286
pat.williams@jll.com

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Chad Prescher
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Life Sciences: Alexandria sets the stage for one project, pauses another

By on September 30, 2023

REIT maneuvers ahead of a hoped-for rebound in the LSRE market

By Murray W. Wolf

The Alexandria Center for Life Science is slated to include three office and lab buildings totaling about 1.3 million s.f. (Photo courtesy of Alexandria Real Estate Equities)

As it seeks to navigate today’s complex and challenging life sciences real estate (LSRE) environment, the sector’s largest real estate investment trust (REIT) is setting the stage for the development of one project, tapping the brakes on another, and contending with a lease termination of almost 100,000 square feet in a third.

Local news media reported yesterday (Sept. 29) that Pasadena-based Alexandria Real Estate Equities Inc. (NYSE: ARE) is laying the groundwork to proceed with the long-planned third tower at its Alexandria Center for Life Science campus on Manhattan’s East Side. Across the country in Seattle, Alexandria has apparently paused construction of its 701 Dexter project in Seattle. And in the San Francisco Bay Area, the REIT is trying to backfill a looming vacancy to be left by a departing biotech firm.

Alexandria Center for Life Science, New York

At full build-out, the Alexandria Center for Life Science is slated to include three office and lab buildings totaling about 1.3 million square feet. Alexandria has a long-term ground lease for the city-owned, 3.5-acre site, which is bounded by 28th and 29th Streets, First Avenue and FDR Drive, between Bellevue Hospital and NYU Medical Center.

The 15-story, 310,000 square foot East Tower was completed in 2010, and the 16-story, 410,000 square foot West Tower in 2013. A winter garden, restaurant, café and conference center were also built as part of those initial phases.

Construction of the third and final phase, a 20-story, 550,000 square foot North Tower, was scheduled to begin in 2020, with completion anticipated by 2022. However, the project has been delayed by the search for one or more major tenants, as well as the COVID-19 pandemic.

Local news media reports that city officials now anticipate that financing for the project will close by late 2024 or early 2025, with construction to begin shortly thereafter. The news came to light recently when the REIT reportedly filed related permit applications with the city. Alexandria is not commenting.

According to the New York City Economic Development Corp. website, more than 50 tenants currently occupy space in the first two towers. That includes the New York headquarters of Bristol-Myers Squibb (NYSE: BMY), as well as spaces leased by Eli Lilly and Company (NYSE: LLY), Accelerator Life Science Partners, Intra-Cellular Therapies Inc. (Nasdaq: ITCI), Kallyope, MeiraGTx Holdings (Nasdaq: MGTX) and Cellectis in the West Tower. Tenants in the East Tower include the Pfizer Inc. (NYSE: PFE) Center for Therapeutic Innovation, NYU Langone, Petra Pharma Corp., BlueRock Therapeutics LP and Kadmon Corp.

The two towers were fully leased at one point but, according to the property website, 30,408 rentable square feet are “immediately available for lease.”

The New York City market had a lab vacancy rate of 31.8 percent as of the end of Q2, according to a recent report from CBRE Group Inc. (NSYE: CBRE).

For more information about the Alexandria Center for Life Science, please click here.

701 Dexter, Seattle

Meanwhile, on the other side of the country, in Seattle, Alexandria has apparently stopped construction of its 11-story, 266,898 square foot office and lab project at 701 Dexter Ave. N. in the Lake Union sub-market.

The recently released third quarter (Q3) Seattle office market report from Colliers International noted that the 701 Dexter project was “on hold.” The local Puget Sounds Business Journal subsequently visited the construction site and reported that it found no activity. Alexandria is not commenting.

The project site is just west of the recently completed two-tower, 500,000 square foot Dexter Yard office and lab campus, which was developed by a rival firm, BioMed Realty, which is owned by New York-based Blackstone Inc. (NYSE: BX).

Although Seattle is considered the ninth- or 10-ranked U.S. life sciences market, a recent JLL report stated that investors consider its Lake Union to be the top-ranking sub-market outside of the “Big Three” U.S. markets of Boston/Cambridge, Mass.; the San Francisco Bay Area; and San Diego.

The Seattle market had a lab vacancy rate of 8.6 percent as of the end of Q2, according to the recent CBRE report.

Seattle lab leasing activity “declined in Q2 to a fraction of the quarterly totals over the past two years,” the report stated, adding that nearly 1.6 million square feet of life sciences lab/R&D and biomanufacturing space is under construction, and is 53 percent pre-leased.

Newmark Group Inc. (Nasdaq: NMRK) is marketing the 701 Dexter space. The project team also includes ZGF Architects and general contractor Lease Crutcher Lewis.

For more information about the 701 Dexter project, please click here.

Atreca terminates 99,557 s.f. lease

As if to underscore the challenges faced by LSRE landlords, Atreca Inc. (Nasdaq: BCEL) disclosed last Thursday (Sept. 21) that it had agreed to terminate its 99,557 square foot headquarters lease in an Alexandria-owned facility at 835 Industrial Road in San Carlos, Calif.

In a U.S. Securities and Exchange Commission (SEC) Form 8-K filing, the financially struggling biotech company said it agreed to pay about $5.1 million to Alexandria to get out of the lease, “which represented approximately $13 million of annual expenditures.” The lease, which was signed in July 2013, had been scheduled to continue until April 2033.

In its news release, which also announced the departure of the s CFO, Atreca CEO John Orwin stated, “The agreement to terminate our lease agreement dramatically reduces our ongoing operating expenses and helps to extend our cash runway through the first quarter of 2024. Alexandria Real Estate Equities has been an excellent real estate partner for Atreca and we are extremely grateful for their willingness to help us to address this significant obligation, which will facilitate the company’s evaluation of strategic transactions.”

As for when and where the firm is going to go, the news release stated, “Atreca will vacate the premises by Nov. 30, 2023, and will be evaluating options for facilities sized to its current operational needs.”

On the plus side, Alexandria Executive Chairman and Founder Joel Marcus last week told various news organizations in an email, “We are in negotiations to re-lease the entire space.”

To read the Atreca news release, please click here.

ARE and AI

Despite the challenges, Alexandria officials remain bullish about the long-term prospects for the LSRA space. In a news release Wednesday (Sept. 27), the REIT touted its long and extensive involvement with artificial intelligence (AI).

“AI and machine learning have been utilized for decades across the life science industry, including as integral tools in the development of many approved therapies – this is not a new phenomenon,” said Hallie E. Kuhn, Ph.D., senior VP of science and technology and capital markets at Alexandria Real Estate Equities and Alexandria Venture Investments.

“These algorithms require large and high-quality data sets that are generated from experiments conducted in laboratories, and novel therapies will always require extensive laboratory testing to confirm their safety and efficacy before advancing to human studies, which contributes to the continued need for specialized R&D laboratory space,” she said.

For more information on Alexandria’s involvement in AI, please click here.

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News Release: Flagship Healthcare Properties acquires medical office building and ambulatory surgery center in Fredericksburg, Virginia

By on September 29, 2023

Property is home to several esteemed medical practices

CHARLOTTE, N.C., Sept. 29, 2023 — Flagship Healthcare Properties (Flagship), an outpatient healthcare real estate firm, has acquired a Class A medical office building (MOB) and ambulatory surgery center (ASC) in Fredericksburg, Virginia.

Built in 2011, the 96% leased multi-tenant property is located at 1500 Dixon Street. The building is anchored by Surgi-Center of Central Virginia, an affiliate of United Surgical Partners International, the area’s leading multi-specialty surgery center with four operating and three treatment rooms. Other tenants include HCA Virginia – Richmond Multi-Specialty, Fredericksburg Foot & Ankle Center, and Allergy & Asthma Center of Fredericksburg. The property is near the 471-bed Mary Washington Hospital, a regional medical center, and the 133-bed HCA Virginia’s Spotsylvania Regional Medical Center, a general acute care community hospital.

Fredericksburg is a part of the Washington metropolitan area, located halfway between Washington, D.C. and Richmond on the I-95 corridor. The greater Fredericksburg region has been named Virginia’s fastest-growing for five consecutive years, according to Virginia Economic Development Partnership. Education and healthcare serve as the city’s main employers and economic drivers. Due to Fredericksburg robust economy and ideal location, the city was recognized in 2019 as the #1 Best Small City for Quality of Life in Virginia and ranked #23 nationwide.

“What really attracted us to this outpatient facility was the tremendous synergies between the robust ambulatory surgery center (ASC) and the other tenant specialists in the building that utilize the ASC to perform their cases on a daily basis,” said Flagship’s Executive Vice President of Acquisitions Gerald Quattlebalm. “Another attraction to this particular property was that it adds scale in this thriving market in which we can build upon our existing presence.”

“We are excited about acquiring this high-quality medical office building anchored by a market leading multispecialty surgery center with trusted providers and a national ASC operator, in partnership, as a long-term tenant,” said Blake Bratcher, Flagship’s Executive Vice President of Ambulatory Surgery Centers. “Ambulatory surgery centers are at the forefront of transformation in health care delivery, and we are continuing to capitalize on new opportunities in alignment with physicians and surgery center operators to help them maximize their real estate so they can carry out their mission more effectively.”

The property was acquired through Flagship’s private real estate investment trust, Flagship Healthcare Trust (Flagship REIT). Flagship will also provide property management and asset management services for the MOB. Financing was provided by Fifth Third Bank.

 

About Flagship Healthcare Properties

Flagship Healthcare Properties, LLC (Flagship) is a fully-integrated outpatient healthcare real estate firm serving clients predominantly throughout the Southeastern and Southern Mid-Atlantic United States. Headquartered in Charlotte, North Carolina, Flagship offers a full range of real estate services including acquisitions, development, leasing and brokerage, as well as facilities, property and asset management. Flagship manages over 6.3 million square feet of healthcare real estate in over 304 properties serving more than 607 tenants. Flagship serves as the manager of its private REIT, Flagship Healthcare Trust, Inc. For further information, visit www.FlagshipHP.com.

About Flagship Healthcare Trust

Flagship Healthcare Trust, Inc. (Flagship REIT), is a private real estate investment trust that owns clinical healthcare assets in the United States. Flagship REIT holds interest in more than 100 properties comprising 2.64 million square feet of space and valued at nearly $1 billion. For further information, visitwww.FlagshipREIT.com.

 

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News Release: JLL arranges $1.3B medical office loan portfolio on behalf of Synovus Financial Corp.

By on September 29, 2023

JLL’s Loan Sales and M&A teams led sales efforts for the medical office portfolio spanning 33 states across the U.S.

NEW YORK, Sept. 19, 2023 –  JLL’s Capital Markets group announced today that as exclusive advisor to Synovus Financial Corp., it worked to arrange the sale of a $1.3 billion medical office loan portfolio to Kayne Anderson Real Estate.

The portfolio consists of 106 floating-rate mortgages secured by 308 best-in-class medical office (“MOB”) properties. The properties are sponsored by a number of blue-chip institutional MOB investors. With approximately 35% of the properties anchored by hospital systems, the portfolio totals just under 13 million net rentable square feet and is 92.3% leased on a long-term basis with a weighted average remaining lease term of nine years.

“As we disclosed during our second quarter earnings call, we believe exiting this line of business will be meaningful for the bank as the capital and liquidity from the sale will allow us to pay down higher-cost wholesale funding in the near term and improve our net interest margin and wholesale funding ratio,” said Jamie Gregory, Chief Financial Officer, Synovus. “In addition, by reducing risk-weighted assets, we expect to accelerate our path to targeted capital levels.”

“As one of the leading investors in medical office properties both as an owner and lender, our deep experience and tenured team in the sector equipped us to thoroughly evaluate this opportunity and move with speed and certainty to close,” said Al Rabil, Chief Executive Officer, Kayne Anderson Capital Advisors and co-founder and CEO, Kayne Anderson Real Estate.

“We crafted a creative capital solution to purchase this attractive medical office portfolio from Synovus and expand our real estate debt platform,” added David Selznick, Chief Investment Officer at Kayne Anderson Real Estate.

“This transaction proves to the client’s credit, that liquidity not only remains for secondary loan sale offerings but is especially prevalent for high quality portfolios,” said Will Sledge, Co-Head of JLL’s Loan Sales team.

“Synovus’ portfolio sale and continued working relationship with Kayne Anderson highlights the success that can be achieved by an integrated M&A and product specialist team with expertise advising public and private companies evaluating highly-strategic decisions,” added Ted Flagg, Senior Managing Director in JLL’s M&A and Corporate Advisory team.

The JLL Capital Markets advisory team included Will Sledge and Kyle Kaminski from JLL’s Loan Sale Advisory team in tandem with Ted Flagg and Dan Freese from JLL Securities’ M&A and Corporate Advisory Team.

JLL Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

About Kayne Anderson Real Estate

Kayne Anderson Real Estate is a leading real estate investment firm, managing over $14 billion in assets under management across opportunistic equity, core equity, and real estate debt, with sector expertise in medical office, seniors housing, off-campus student housing, multifamily housing, and self-storage. Kayne Anderson Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $32 billion alternative investment management firm with more than 39 years of successful experience in the real estate, renewable and energy infrastructure, energy, credit, and growth capital sectors. For more information, visit https://kaynecapital.com/real-estate/.

 

About Synovus 

Synovus Bank, a Georgia-chartered, FDIC-insured bank, provides commercial and consumer banking in addition to a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and is on the web at synovus.com and on Twitter, Facebook, LinkedIn and Instagram.

 

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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News Release: Survey Results: Medical Office Buildings Remain an Attractive and Stable Investment Despite Volatile Capital Markets

By on September 29, 2023

Executive Summary

Despite significant volatility in the capital markets and operating and financial headwinds in the healthcare industry, medical office buildings (MOBs) are holding their own as attractive investment opportunities, according to our survey of a diverse range of real estate investors.

The survey’s key findings include the following:

  • Almost 90% of our survey respondents report that occupancy rates have improved or remained the same over the last 12 months.
  • 86% of respondents expect their portfolio of MOBs to perform the same or better in 2024.
  • 84% of respondents anticipate annual rent escalations of 3% or higher for new or renewal MOB leases.
  • 80% of respondents anticipate a lease renewal probability rate of 85% or above.
  • Only 3% of respondents see a lower lease renewal probability in their market; 65% say renewal probabilities will remain status quo, while 32% see a higher probability of lease renewals.
  • No respondents report a decrease in rental rates; approximately half say rates have increased and the remaining half indicate that they have stayed the same.

One potential area of challenge is tenant improvement packages; 76% of respondents say that more aggressive packages have been required to induce tenants to sign or renew their leases. But significantly fewer respondents—just 16%—say that they have had to be more aggressive in offering other lease incentives, such as free rent, to induce tenants to sign. This could suggest that the increased demand for larger tenant improvement packages is being driven primarily by rising costs due to inflation, rather than an uptick in landlord concessions or broader improvement requirements.

In short, the survey results indicate a market with significant fundamental strength despite capital market challenges. Cap rates are up, meaning valuations are down, and transaction volumes are also down. Past experience suggests that this dynamic may offer a significant opportunity to buy high performing assets at attractive historic relative valuations.

About the Survey Respondents

  • 37 healthcare real estate investors
  • Collectively manage over 60 million square feet of MOBs
  • Represent diverse investor platforms

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REAL ESTATE
REAL ESTATE TRANSACTIONS
Hunter headshot
E. Hunter Beebe
SERVICE LINE LEADER, REAL ESTATE
Hunter Beebe leads the firm’s Real Estate Service Line. With over 20 years of experience advising health systems, academic institutions, physician practices, developers, investors, and healthcare and higher education real estate operators. He has worked on more than $10 billion in real estate related assignments over his career.

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