Remedy Medical Properties and Kayne Anderson Expand Outpatient Medical Holdings in Major Acquisition

Major Acquisition in Healthcare Real Estate

In a significant move in the healthcare real estate sector, Remedy Medical Properties and Kayne Anderson Real Estate have announced the acquisition of a substantial portfolio of outpatient medical assets from Welltower. This alliance establishes them as the largest private owner of healthcare real estate in the United States, reinforcing their commitment to enhancing healthcare delivery across the nation.

The Acquisition Details

This strategic purchase includes approximately 18 million square feet spread over 296 properties across 34 states. With this addition, Remedy and Kayne Anderson now oversee more than 52.4 million square feet of outpatient medical facilities across about 1,104 properties in a total of 44 states. This remarkable expansion also sees Remedy welcoming 170 Welltower employees into its fold, increasing its workforce to over 500 professionals working from 60 offices nationwide.

Al Rabil, CEO of Kayne Anderson Real Estate, emphasized the importance of size and strategic partnerships in the medical office arena. He remarked, "This acquisition reinforces our position as leading institutional investors in the outpatient healthcare sector and underscores our long-standing, successful partnership with Remedy. We remain focused on building upon our history of delivering superior risk-adjusted returns" while enhancing healthcare quality.

Strengthening Healthcare Footprint

Peter Westmeyer, the Founder and CEO of Remedy Medical Properties, expressed that this transaction marks a strengthening of their commitment to healthcare tenants. He mentioned the aim to blend their best-in-class platforms to cultivate a leading, data-driven environment focused on tenants' needs in the outpatient medical real estate sector.

Furthermore, Joe Magliochetti, Chief Investment Officer at Remedy Medical, highlighted that the portfolio expansion signifies Growth of nearly 60% for the company. He noted excitement about this increased presence in major markets and the potential for deeper relationships with top health providers.

David Selznick, Chief Investment Officer of Kayne Anderson Real Estate, pointed out the reliable fundamentals surrounding outpatient medical real estate. He attributed these trends to demographic shifts and increased demand for cost-effective community-based healthcare solutions. This acquisition not only enhances the portfolio's quality and diversity but also positions the joint venture to leverage ongoing sector growth effectively.

Financial Backing

The acquisition, supported by financial advisors Citigroup Global Markets Inc., J.P. Morgan, and Truist Securities, was financed through two distinct mortgage loans. The first mortgage was primarily arranged by Capital One, with other participating banks, while the second was led by Citigroup.

About Remedy Medical Properties

With its extensive resources, Remedy Medical Properties excels as a comprehensive healthcare real estate firm. As the largest owner of healthcare properties in the United States, it operates across 44 states, offering flexibility in ownership, development, leasing, and strategic partnerships with healthcare providers. Their commitment centers around operational efficiency and facilitating high-quality patient care.

About Kayne Anderson Real Estate

Kayne Anderson Real Estate is recognized as a prominent real estate investment firm, managing around $19 billion in assets with expertise in various sectors, including medical offices and seniors housing. As part of Kayne Anderson, a broader alternative investment management firm, they uphold a significant reputation built over 41 years in diverse investment strategies.

This acquisition represents a pivotal moment for both companies as they continue to shape the future of healthcare infrastructure in the United States, ensuring that high-quality healthcare services remain readily available to communities across the country.