Angelo Gordon JV Obtains $75M Credit Facility

A joint venture between Sendero Capital and Angelo Gordon, formed to target the medical property sector, has received a $75 million credit facility. JLL Capital Markets arranged the funding.

The credit facility is seeded with four assets totaling 201,369 square feet in Connecticut, Rhode Island and New Hampshire. This seed portfolio totaled nearly $30 million in initial loan proceeds, with a $45 million accordion feature for the acquisition of additional medical properties.

In a prepared statement, JLL said the credit facility “provides Sendero Capital and Angelo Gordon’s programmatic joint venture—which allows for up to $300 million in investments in outpatient health-care real estate—flexibility and certainty of execution in a challenging credit environment.”

READ ALSO: MOB Sector Remains Stable, Attractive

JLL added that the joint venture focuses on value-add and core-plus outpatient medical offices and surgery centers across the Northeast, a region with “high barriers to entry, strong growth and one of the largest concentrations of health-care businesses in the U.S.”

The JLL Capital Markets Debt Advisory team was led by Director Anthony Sardo.

The Sendero Capital–Angelo Gordon programmatic JV was formed this past summer, also with assistance from JLL Capital Markets.

Healthy sector

In May, TPG announced that it would be acquiring Angelo Gordon for about $2.7 billion in cash and equity, after which Angelo Gordon would become an investing platform of TPG. As it happens, that acquisition closed just last week, and Angelo Gordon will now operate as TPG Angelo Gordon.

Nationally, medical office buildings (MOBs) continue to show strong fundamentals, “with steady rent increases and stable, long-term lease obligations,” according to a recent report from Cresa’s Healthcare Practice Group. “The large amount of [MOB] space under construction will test the lease rate gains of the past three years, as occupiers watch to see if rate growth slows.”

On the positive side for MOB demand, Cresa reports, health care is a leading sector in terms of job growth, and the primary driver has been the expansion of ambulatory health care.