Tennessee pension makes $50m investment to medical office portfolio

Tennessee Consolidated Retirement System (TCRS) has made a $50 million co-commitment to a joint venture with AEW and Montecito Medical, as part of the $245 million recapitalization of a 31-property medical office–building portfolio across 10 states, according to media outlets.

The portfolio comprises 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 United States, including the metro areas of Atlanta, Charlotte, N.C., and Miami.

It also consists of 27 single-tenant and four multi-tenant buildings that are purposely aligned with major health systems and dominant physician groups. The portfolio is primarily off-campus and 81 percent of the buildings feature critical infrastructure, such as ambulatory surgery centers or imaging facilities. It has an overall occupancy of nearly 100 percent.