MOB Portfolio Changes Hands in North Carolina

A joint venture of MBRE Healthcare and Kayne Anderson purchased the 10 medical office buildings that are fully leased to OrthoCarolina.
OrthoCarolina Matthews Surgery Center. Image courtesy of JLL

MBRE Healthcare and Kayne Anderson teamed up once again to purchase a medical office portfolio in North Carolina. The undisclosed seller was represented by JLL.

The portfolio includes 10 outpatient orthopedic medical office buildings and surgery centers. Six assets are located in the Charlotte metro area, two properties are located in Winston-Salem, one is in Laurinburg and one is in Shelby. Three of the portfolio’s buildings have ambulatory surgery centers with two operating rooms each and all of the properties are within roughly two miles from the nearest area hospital.

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The entire 218,213-square-foot portfolio is leased to OrthoCarolina—a major orthopedic care company with several locations throughout the state—with a weighted remaining lease term of 13 years.

JLL’s Capital Markets team of Managing Directors Ben Appel and Evan Kovac, Directors Andrew Milne and Zachary Drozda, and Senior Managing Director Ted Flagg represented the seller.

The portfolio garnered a lot of interest from both public and private sources during the marketing process due to the long-term tenant OrthoCarolina, Appel said in a press statement. Kovac added that the previous owners created an attractive lease and joint venture with the physicians that MBRE will continue.

MOB Mentality

MBRE and Kayne Anderson have bought several other medical office buildings throughout the years. In August 2018, the companies purchased a 75,191-square-foot Class A medical office in Ashburn, Va. Months prior in May 2018, MBRE and Kayne Anderson also purchased a four-story medical office building in San Diego with the help of a $14 million loan. And in 2017, the joint venture scored a $311 million refinancing for their 28-property medical office portfolio that spanned 11 states.