Kayne Anderson Real Estate Advisors and MBRE Healthcare Will Continue to Operate and Manage the Portfolio
LOS ANGELES – August 16, 2017 – CBRE Global Investment Partners (GIP) has acquired a 95 percent interest in a 25-building U.S. medical office portfolio. The investment was made on behalf of clients of GIP and marks an expansion of GIP’s investment into the medical office sector. Kayne Anderson Real Estate Advisors (“KAREA”) and MB Real Estate Healthcare (“MBRE Healthcare”) will continue to operate the portfolio and hold a five percent ownership.
The portfolio comprises medical office buildings across 10 states with key concentrations in Atlanta and Chicago totaling 1.4 million square feet of existing space and a 150,000 square foot development project. The assets present a broad geographic exposure with a mix of both off-campus and on/near-campus locations. The portfolio is approximately 95 percent occupied, with key tenants including both national and regional healthcare systems along with high-quality specialists.
GIP will partner with the KAREA/MBRE Healthcare platform, a best-in-class owner/operator in the medical office sector, to continue to create value through leasing and repositioning, focusing on providing solutions to strengthen relationships with tenants and targeting capital expenditure in areas that create and improve a high-quality patient experience.
“The medical office sector has seen strong demand due to demographic drivers that have heightened consumer demand for health care,” said Ian Gleeson, CIO of CBRE Global Investment Partners. “Additionally the medical office sector features high tenant retention rates as tenants invest significant capital in their spaces and prefer to remain in the same location that is convenient for their patient base. We are pleased to partner with Kayne Anderson and MB Real Estate in this venture given their strong relationships with key tenants and industry participants.”
Al Rabil, Managing Partner and CEO of Kayne Anderson Real Estate Advisors, said, “We are pleased that CBRE Global Investors, one of the world’s largest real asset investment managers, is expanding their presence in the medical office space by acquiring a 95 percent stake in the best-in-class portfolio we have built over the past four years. This transaction provides the opportunity for the KAREA/MBRE Healthcare platform to continue to operate these assets to create value for CBRE Global Investors as well as the platform.”
Peter J. Westmeyer, Founder, President and Managing Principal of MBRE Healthcare, added, “This transaction is an exciting moment for the KAREA/MBRE Healthcare platform. Together, we have acquired and enhanced more than 10 million square feet of medical office space throughout the last four years. This particular portfolio of assets is a perfect opportunity for CBRE Global Investors to expand in the medical office business, and we are excited to further enhance operations and continue to strengthen tenant relations and occupancy across the portfolio.”
Evercore acted as financial advisor to KAREA/MBRE Healthcare, and Lee Asher and Chris Bodnar with CBRE's Healthcare Capital Markets Group were advisors on the transaction.
About CBRE Global Investment Partners
CBRE Global Investment Partners is the division of CBRE Global Investors that delivers investment solutions customized for clients’ individual objectives by constructing portfolios using private funds, secondaries, co-investments and joint ventures, partnering with leading operators and fund managers for each strategy. Investments cover the risk spectrum from core to enhanced, can be global or regional in nature, and use a variety of investment vehicles based on clients' preferences. GIP has $15.7 billion in assets under management* as of June 30, 2017. CBRE Global Investment Partners’ AUM includes investments in programs managed by the direct side of CBRE Global Investors. CBRE Global Investment Partners Limited is authorized and regulated in the United Kingdom by the Financial Conduct Authority (FCA).
About CBRE Global Investors
CBRE Global Investors is a global real asset investment management firm with $98.9 billion in assets under management* on a combined pro forma basis, as of June 30, 2017, to reflect the completion of the acquisition of a majority stake in Caledon Capital Management Inc.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real asset-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors' presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.
About Kayne Anderson Real Estate Advisors
Kayne Anderson Real Estate Advisors (KAREA) is a leading real estate private equity investor with dedicated equity and debt funds focused on senior housing, medical office buildings and off-campus student housing. Kayne Real Estate has raised approximately $5 billion in commitments since 2007. Kayne Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $25.5 billion alternative investment management firm (AUM as of 6/30/17) with more than 30 years of successful experience in the energy, infrastructure, growth capital, real estate, and middle market credit sectors. For more information, visit http://www.kaynecapital.com/strategies/real-estate-private-equity.
About MB Real Estate Healthcare
Founded in 1982, MB Real Estate is a full-service real estate organization that provides multifaceted expertise in Asset/Facilities Management; Leasing Services; Project/Construction Management; Tenant Representation and Investment Services. Separately, MBRE Healthcare and its independent affiliate fund manager, ROA Holdings, are a full-service real estate entity that acquires, develops, leases, and manages healthcare facilities across the United States. MBRE Healthcare is headquartered in Chicago, with regional offices in New York, Atlanta, Columbus, Orlando, Dallas and Denver. For more information, visit www.mbrehealthcare.com