JLL arranges $1.3b medical office loan portfolio sale on behalf of Synovus Financial Corp.
- The sale of the medical office loan portfolio will improve Synovus' net interest margin and wholesale funding ratio
- None.
JLL's Loan Sales and M&A teams led sales efforts for the medical office portfolio spanning 33 states across the
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
"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 advisory team with expertise across public and private company clients 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.
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About Kayne Anderson Real Estate
Kayne Anderson Real Estate is a leading real estate investment firm, managing over
About Synovus
Synovus Bank, a
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
Contact: Alli Semans, Public Relations, Associate
Phone: +1 330 329 6750
Email: Alli.Semans@jll.com
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SOURCE JLL