Done Deals: JLL arranges $1.3 billion medical office loan portfolio sale for Synovus Financial Corp.

Tuesday, September 19, 2023

JLL arranges $1.3 billion medical office loan portfolio sale for Synovus Financial Corp.

Jamie Gregory

NEW YORK, NY, 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.

Al Rabil

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.”

David Selznick,

“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.

Will Sledge

“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.

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.

Kyle Kaminski

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.

Ted Flagg

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.