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Kayne Anderson acquires $1.3B medical office loan portfolio

Synovus Bank’s debt portfolio secured by 300 properties

Kayne Anderson Acquires $1.3B Medical Office Loan Portfolio
Kayne Anderson's Al Rabil; Synovus Bank's Kevin Blair (Getty, Kayne Anderson, Synovus Bank)

Kayne Anderson Real Estate’s push to diversify its credit portfolio received a major shot in the arm by way of a 10-figure portfolio purchase.

The real estate arm of Kayne Anderson Capital Advisors bought a loan portfolio from Synovus Bank for $1.3 billion, the companies announced this week. The loan portfolio includes 106 floating-rate mortgages, secured by 308 medical office buildings.

The properties securing the loans span 33 states and nearly 13 million rentable square feet. More than a third of the properties are anchored by hospital systems and the properties are a combined 92.3 percent leased with a weighted average remaining lease term of nine years.

An executive from Synovus said in a statement the capital and liquidity from the sale would allow the bank to pay down higher-cost wholesale funding.

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Kayne Anderson manages more than $14 billion in assets. It launched its debt platform in 2015, closing on more than $11 billion through the platform in the last eight years, including its latest acquisition.

The company’s real estate activity centers on medical offices, self-storage, off-campus student housing and the multifamily market. It’s the first of those where Kayne Anderson has made much of its recent noise as firms try to take advantage of a surge in outpatient care and the increased viability of medical office buildings compared to traditional office counterparts.

In July, Kayne Anderson partnered with Remedy to buy an Atlanta medical office building portfolio for $131 million, according to Bisnow, accounting for 192,000 square feet. This year also saw a joint venture between the same partners spend $131 million on a 300,000-square-foot portfolio comprising a baker’s dozen of fully-leased medical office buildings.

Kayne Anderson Real Estate boasts 25 million square feet of medical office buildings through hundreds of properties across the country.

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HealthcareMedical OfficesReal Estate Finance