Texas County & District Retirement System Partakes in Southern US Medical Office Building Recap

Posted on 10/06/2021

A joint venture between AEW Capital Management and Montecito Medical Real Estate conducted a US$ 245 million recapitalization of a 31-property medical office building portfolio across 10 states. The portfolio is comprised of 27 single-tenant and four multi-tenant buildings aligned with major health systems and physician groups. More than half of the assets are located in the Southern U.S., including the metro areas of Atlanta, Charlotte, N.C., and Miami. Montecito Medical Real Estate found a recapitalization partner in AEW Capital. Texas County & District Retirement System (TCDRS) made a US$ 50 million co-investment as part of the recap.

JLL Capital Markets, part of Jones Lang LaSalle, facilitated the recap deal. After the recapitalization, BMO Harris Bank distributed US$ 176 million of acquisition financing to the new ownership group.

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