In early November, Mindy Berman, senior managing director and head of the healthcare capital markets platform with Jones Lang LaSalle Inc. (NYSE: JLL), reported during an HRE conference that year-to-date in 2021 there had been 21 MOB portfolio deals topping $100 million each.
For all of 2021, Berman predicted that by the end of the year large portfolio deals topping $100 million each would account for about $8 billion in MOB sales, well over 50 percent of the year’s total, which was projected at about $14 billion.
Such a total, Berman said, would far surpass that of typical years, which typically see about $4 billion in volume of large portfolio deals.
During that same panel session at the BOMA MOB Conference, Berman added that of those 21 large portfolio deals, 10 of them were recapitalizations, or transactions in which an investor acquires a share of – typically a large share of — a portfolio owned by an HRE firm.
Well, 2021 saw two more large recapitalizations as the year came to a close.
In one of those recapitalization deals, Washington, D.C.-based National Real Estate Advisors obtained a portion of portfolio owned by longtime HRE firm Catalyst Healthcare Real Estate, based in Pensacola, Fla. In launching a new joint venture partnership, the two firm engaged in a recap in December estimated at about $380 million and also acquired MOBs after Jan. 1.
The firm’s JV plans to invest about $1 billion moving forward on healthcare development projects and acquisitions.
Chad Henderson, Catalyst’s founder and CEO, said: “National has agreed to place a large amount of equity with us, but they’re a lot more than just deep pockets. Just as important is our similar view of the power of real partnerships in the sector, our alignment in valuing strong relationships, and our collective approach to a long-term investment strategy.”
Also in December, White Plains, N.Y.-based Seavest Healthcare Properties, a longtime HRE development firm, investor and owner, announced that it had recapitalized a portion of its MOB portfolio in $1billion deal with Nuveen Real Estate, part of Chicago-based Nuveen LLC and which has $144 billion in real estate assets worldwide.
Andrew Pyke, head of healthcare real estate at Nuveen, noted that the “transaction is a great addition to Nuveen’s healthcare real estate portfolio, and we are excited to expand our partnership with Seavest. Nuveen is focused on investing in strategically located, high-quality medical facilities that are positioned to efficiently deliver quality care to the surrounding community. This portfolio accomplishes that.”
Jonathan L. “John” Winer, senior managing director and chief investment officer of Seavest, said the transaction is a “testament to our ongoing success working together. We have assembled a portfolio of highly strategic medical properties through our acquisition and development efforts. This enhancement to our partnership with Nuveen enables Seavest to advance our mission of building long term relationships with our health system and physician tenants.”