Portfolio is backed by 308 medical office
properties across the U.S.
RATON, Fla., Sept. 18,
2023 /PRNewswire/ -- Kayne Anderson Real Estate, the
real estate investment arm of Kayne Anderson Capital Advisors, L.P.
including its debt platform, Kayne Anderson Real Estate Debt
("KARED"), and Synovus Bank today announced the closing of a
$1.3 billion sale of Synovus's
medical office loan portfolio (the "Loan Portfolio") to KARED.
The Loan Portfolio consists of 106 floating rate mortgages
secured by 308 medical office building ("MOB") properties. The
properties span 33 states across the U.S. and are sponsored by a
number of blue-chip institutional MOB investors. With approximately
35% of the properties anchored by hospital systems, the portfolio –
which totals just under 13 million net rentable square feet – is
92.3% leased on a long-term basis with a weighted average remaining
lease term of nine years.
"As one of the leading investors in medical
office properties both as an owner and lender, our
deep experience and tenured team in the
sector equipped us to thoroughly evaluate
this opportunity and move with speed and certainty to close," said
Al Rabil, chief executive officer,
Kayne Anderson Capital Advisors and co-founder and CEO, Kayne
Anderson Real Estate. "We are pleased to diversify
and enhance our existing real estate credit
portfolio with this strategic acquisition as we
continue to significantly scale the platform
to capitalize on opportunities in today's landscape."
"We crafted a creative capital solution to purchase this
attractive medical office portfolio from Synovus and
expand our real estate debt platform," said David
Selznick, chief investment officer at Kayne
Anderson Real Estate. "Together, we brought certainty of
execution to a complex transaction. This portfolio
underscores our ability to work closely with a
like-minded partner to achieve a mutually beneficial
"As we disclosed during our second quarter earnings call, we
believe exiting this line of business will be meaningful for the
bank as the capital and liquidity from the sale will allow us to
pay down higher-cost wholesale funding in the near term and improve
our net interest margin and wholesale funding ratio," said
Jamie Gregory, chief financial
officer, Synovus. "In addition, by reducing risk-weighted assets,
we expect to accelerate our path to targeted capital levels."
The acquisition of the Loan Portfolio contributes to the rapid
expansion of Kayne Anderson Real Estate Debt's platform, which has
closed on more than $11 billion since
the platform launched in 2015.
JLL Capital Markets served as exclusive financial advisor to
About Kayne Anderson Real Estate
Kayne Anderson Real
Estate is a leading real estate investment firm, managing over
$14 billion in assets under
management across opportunistic equity, core equity, and real
estate debt, with sector expertise in medical office, seniors
housing, off-campus student housing, multifamily housing, and
self-storage. Kayne Anderson Real Estate is part of Kayne Anderson
Capital Advisors, L.P., a $32 billion
alternative investment management firm with more than 39 years of
successful experience in the real estate, renewable and energy
infrastructure, energy, credit, and growth capital sectors. For
more information, visit https://kaynecapital.com/real-estate/.
About Synovus Bank
Synovus Bank, a Georgia-chartered, FDIC-insured bank, provides
commercial and consumer banking in addition to a full suite of
specialized products and services, including private banking,
treasury management, wealth management, mortgage services, premium
finance, asset-based lending, structured lending, capital markets
and international banking. Synovus has branches in Georgia, Alabama, South
Carolina, Florida and
Tennessee. Synovus is a Great
Place to Work-Certified Company and is on the web
at synovus.com, and
on Twitter, Facebook, LinkedIn and Instagram.
Cautionary Statement Regarding Forward-Looking
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 including, but not limited
to, Synovus' expectations or predictions of future financial or
business performance or conditions. Forward-looking statements are
typically identified by words such as "believe," "expect,"
"anticipate," "intend," "target," "estimate," "continue,"
"positions," "plan," "predict," "project," "forecast," "guidance,"
"goal," "objective," "prospects," "possible," or "potential," by
future conditional verbs such as "assume," "will," "would,"
"should," "could" or "may", or by variations of such words or by
similar expressions. These forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are
made and we assume no duty to update forward-looking statements.
Actual results may differ materially from those contemplated by
such forward-looking statements.
These forward-looking statements are made to provide the public
with management's current expectations with regard to foregoing
transaction. Although Synovus believes the expectations reflected
in forward-looking statements are reasonable, there can be no
assurances such expectations will prove to be accurate. Security
holders are cautioned such forward-looking statements involve risks
and uncertainties. Certain factors may cause results to differ
materially from those anticipated by the forward-looking statements
made in this release. Such factors may include, without limitation,
the risks and uncertainties discussed and described in (i) Synovus'
annual report on Form 10-K filed with the Securities and Exchange
Commission (the "SEC") on February 24,
2023, including the risks described in Part 1, Item 1A,
"Risk Factors" thereof, and (ii) the other reports filed with the
SEC. Many of these risks and uncertainties are beyond the ability
of Synovus to control, nor can Synovus predict, in many cases, all
of the risks and uncertainties that could cause its actual results
to differ materially from those indicated by the forward-looking
statements. The forward-looking statements contained in this
release speak only as of the date of this release, and the Company
expressly disclaims any obligation or undertaking to report any
updates or revisions to any such statement to reflect any change in
the Company's expectations or any change in events, conditions or
circumstances on which any such statement is based, except as
required by law.
Kayne Anderson Real Estate
Keehner / Erik Carlson
Joele Frank, Wilkinson Brimmer
SOURCE Kayne Anderson Real Estate; Synovus Bank