Kayne Anderson buys $1.3bn medical office loan portfolio from Synovus Bank
Kayne Anderson Real Estate, along with its debt platform Kayne Anderson Real Estate Debt (KARED), announced the closing of a $1.3 billion acquisition of Synovus Bank’s medical office loan portfolio in a landmark deal that bolsters its standing in the real estate investment sector. This significant transaction comprises 106 floating-rate mortgages, secured by 308 medical office building (MOB) properties across 33 states in the U.S. Backed by blue-chip institutional MOB investors and featuring a weighted average remaining lease term of nine years, the portfolio is 92.3% leased.
Kayne Anderson Capitalizes on Expertise in Medical Office Properties
Al Rabil, CEO of Kayne Anderson Capital Advisors and co-founder and CEO of Kayne Anderson Real Estate, lauded the acquisition as a strategic addition to their existing real estate credit portfolio. “As one of the leading investors in medical office properties, our deep experience and tenured team equipped us to move quickly and close this deal,” Rabil stated. Kayne Anderson continues to scale its platform to capitalize on real estate investment opportunities in the current market landscape.
Synovus Bank Eyes Capital Efficiency and Improved Net Interest Margin
Jamie Gregory, CFO of Synovus Bank, stated that the sale of the loan portfolio aligns with the bank’s financial strategy. “The capital and liquidity from this sale will help us pay down higher-cost wholesale funding and improve our net interest margin,” Gregory revealed. Synovus Bank believes that the exit from this line of business will accelerate its path to targeted capital levels.
Kayne Anderson Real Estate Debt’s Rapid Expansion Continues
This acquisition serves as another milestone in the rapid expansion of Kayne Anderson Real Estate Debt, which has closed on over $11 billion since its inception in 2015. David Selznick, CIO at Kayne Anderson Real Estate, emphasized the mutually beneficial nature of this complex transaction with Synovus, stating, “This portfolio underscores our ability to work closely with a like-minded partner.”
JLL Capital Markets Advises Synovus in Multi-Billion Dollar Deal
In this high-stakes transaction, JLL Capital Markets played the role of exclusive financial advisor to Synovus Bank, ensuring a smooth and efficient deal process. With the acquisition now closed, both Kayne Anderson and Synovus Bank look forward to optimizing their financial strategies and capitalizing on new opportunities in the medical office and real estate investment sectors.