JLL completes sale of 10-property MOB portfolio in NC

PHILADELPHIA, December 5, 2019 – JLL announced today that it has closed the sale of a fully leased MOB portfolio comprising 10 outpatient orthopedic medical office buildings totaling 218,213 square feet near Charlotte and Winston-Salem, North Carolina.  MBRE Healthcare and Kayne Anderson purchased the portfolio.

The portfolio is a core compilation of 10 on- and off-campus, outpatient orthopedic medical office buildings and surgery centers, 100% leased to OrthoCarolina, the 3^rd largest orthopedic provider in the nation by physician count, with a weighted remaining lease term of 13 years. Three of the buildings feature ambulatory surgery centers with two operating rooms each. 60% of the properties are in the Charlotte MSA, the 23rd largest MSA in the country, with two properties located in Winston-Salem and one each in Laurinburg and Shelby. All portfolio properties are within 2.2 miles of the nearest hospital.

The JLL Capital Markets team representing the seller includes managing directors Ben Appel and Evan Kovac and directors Andrew Milne and Zachary Drozda, and senior managing director Ted Flagg.

“The marketing process yielded tremendous interest from core capital sources both public and private, which is a testament to the caliber of OrthoCarolina, and the resulting opportunity for an investor to create immediate scale to that relationship,” Appel said.

“Ownership structured an attractive lease and a desirable physician joint venture that bolstered the marketing of the assets. MBRE did a great job continuing the joint venture relationship with the physicians,” added Kovac.

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 advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

MBRE Healthcare is a full-service healthcare real estate company providing development, acquisition, leasing, management and strategic consulting services across the United States. As one of the largest private owners of healthcare facilities in the country, with over 18 million square feet spanning 38 states, the company creates customized real estate solutions for some of the most discerning healthcare providers in the country. MBRE Healthcare works with hospitals, health systems and physician groups to drive down real estate costs, increase tenant satisfaction, improve the patient experience and expand into new markets. Headquartered in Chicago, the company has eight regional offices located in Atlanta, Columbus, Dallas, Denver, Indianapolis, Orlando, Phoenix and Washington, D.C. For more information visit mbrehealthcare.com. 

Kayne Anderson Real Estate (KA Real Estate) is a leading real estate private equity investor in medical office, seniors housing, off-campus student housing and self storage. KA Real Estate has raised dedicated real estate private equity funds totaling approximately $7 billion in commitments, investing in opportunistic equity, core returns and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $31 billion alternative investment management firm (AUM as of 9/30/19) with more than 30 years of successful experience in the real estate, energy, credit and growth capital sectors.