Nuveen Real Estate acquired 27 medical office buildings in the United States for $ 463 million (â¬ 391 million), with $ 234 million in debt financing from Allianz Real Estate.
The portfolio was sold by IRA Capital and purchased for the Nuveen US Cities Office Fund and an anonymous third-party institutional investor.
Allianz Real Estate has provided seven-year debt, including a fixed rate tranche of $ 164 million and a floating rate tranche of $ 70.2 million, on behalf of several Allianz group companies.
Covering over 747,000 square feet of rental space, the 27 Class A and B properties are located in 13 states: Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, New York, Pennsylvania, Texas and Wisconsin.
The portfolio rental portfolio has a weighted average unexpired lease term of 12 years, and the portfolio includes traditional medical practices, emergency care centers, outpatient surgeries, specialist treatment centers and hospitals.
Allianz said the majority of properties are located in CON states, where local governments need extensive approval processes to prove the need to develop new healthcare facilities in each location, which are high barriers. entry and regulatory restrictions on new supplies.
The portfolio is 99% occupied by 38 tenants, 92% of which are investment grade credit health systems.
Mike Cale, Co-Head of US Debt at Allianz Real Estate, said: âThis is a complex and innovative transaction that underscores our willingness to take a flexible approach to meet the demands of one of our long-standing global partners.
“COVID-19 has highlighted the need to improve the efficiency and ease of access to health care, to increase the demand for ambulatory care centers and more severe care spaces in hospitals .
âPhysicians’ offices therefore represent a unique and resilient asset class, ready to take greater advantage of the strong favorable budgetary winds generated by both the CARES law and the US small business stimulus program. “
The transaction is Allianz’s second US debt deal with Nuveen Real Estate, following its $ 94 million financing of six industrial properties for the Nuveen US Cities Industrial Fund in 2020.
âWe are delighted to have completed this latest transaction,â said Christoph Donner, CEO of Allianz Real Estate of America. âDespite the volatility observed over the past 12 months, Allianz Real Estate has significantly expanded its US portfolio, reaching a record $ 21.6 billion in assets under management at the end of 2020, covering equity and debt. . We look forward to continuing our commitment to the region.