NEW YORK, August 6, 2021 / PRNewswire / – Allianz Real Estate, acting on behalf of several Allianz group companies, has completed a $ 234 million loan investment for a joint venture between the Nuveen US Cities Office Fund and a third-party institutional capital partner, guaranteed by a cross-portfolio of 27 medical practice properties in the United States. The properties were purchased from IRA Capital.
This transaction marks the second US debt transaction with Nuveen Real Estate, following Allianz’s $ 94 million financing by Allianz of an industrial portfolio of six properties for the US Cities Industrial Fund (âUSCIFâ) of the investment manager in 2020.
This is important for several reasons, including the unique nature of the loan and the size of the portfolio. The transaction is structured over a period of 7 years with both a fixed rate tranche of $ 163.8 million (70%), a variable rate tranche of $ 70.2 million (30%) and is the first of its kind provided by Allianz Real Estate in the United States and Europe. The loan will provide 51% of the total purchase price of $ 462.9 million, and the Sponsorship will have $ 228.9 million equity remaining in the transaction.
Totaling over 747,000 leasable square feet, the portfolio represents 27 high-quality, geographically diverse Class A / B medical office buildings in 13 states: Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, new York, Pennsylvania, Texas and Wisconsin. 20 of the 27 properties are located in CON states, where local governments require an extensive approval process to prove the need to develop new healthcare facilities in each location, creating high barriers to entry and regulatory restrictions around the new offering.
The portfolio is 99% occupied by 38 tenants, 92% of which are investment grade credit health systems. The portfolio rental portfolio benefits from a weighted average unexpired lease term (WALT) of 12 years, providing a reasonable lease renewal profile (33% of portfolio NRA) over the term of the loan. The portfolio is well diversified between traditional medical practices, emergency care centers, outpatient surgeries and specialist treatment centers and specialist hospitals.
Mike Cale, co-head of US debt, Allianz Real Estate, United States said, âThis is a complex and innovative transaction that underlines our willingness to take a flexible approach to meet the demands of one of our long-standing global partners.
âCovid-19 has highlighted the need to improve efficiency and ease of access to health care, as well as the growing demand for ambulatory care centers and more severe care spaces in hospitals . spawned by both the CARES Act and the US Small Business Stimulus Program. “
“We are delighted to have finalized this latest transaction,” said Christoph Donner, CEO, Allianz Real Estate from America. âDespite the volatility observed over the past 12 months, Allianz Real Estate has significantly expanded its portfolio in the United States, 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 engagement in the region. . “
About Allianz Real Estate and PIMCOâ¯
Allianz Real Estate is a PIMCO company, comprising Allianz Real Estate GmbH and Allianz Real Estate of America and their subsidiaries and affiliates. He is one of the largest real estate investment managers in the world, developing and executing tailor-made portfolio and investment strategies globally on behalf of a range of responsibility-driven global investors. , creating long-term value for clients through direct and indirect investments and real estate financing. . The operational management of investments and assets is carried out from 18 offices in key gateway cities across 4 regions (Western Europe, North & central Europe, United States and Asia Pacific). For more information, please visit:www.allianz-realestate.com. PIMCO is one of the world’s leading fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to investing in fixed income securities. Over the next nearly 50 years, the company has continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions. PIMCO has offices around the world and more than 3,000 professionals are committed to delivering superior returns, solutions and service to our customers. PIMCO is owned by Allianz SE, one of the world’s leading providers of diversified financial services.
Source: Allianz Real Estate, data as of 31stDecember 2020.
These reviews are, as always, subject to the disclaimer below.
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SOURCE Allianz Immobilier