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Montecito Medical Real Estate Acquires MPoA Medical Office Portfolio

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Montecito Medical Real Estate, a premier owner of medical office properties throughout the U.S., has completed the acquisition of six medical office buildings that were part of the portfolio of Medical Properties of America (MPoA).

The six properties span four states and include:

• Four facilities operated by Outpatient Imaging Affiliates (OIA) in Nashville, TN; Knoxville, TN: Madison, AL; and Wake Forest, NC.

• Clarksville Surgery Center in Clarksville, TN.

• Hartmann Commons in Lebanon, TN

Altogether, the properties that Montecito acquired from MPoA involve more than 80,000 square feet.

“As a company, we have been super active in seeking out and evaluating prime medical office properties at a time when many buyers have pulled back from the market,” said Chip Conk, CEO of Montecito Medical Real Estate. “You can see the fruit of our efforts in an acquisition like this, involving an outstanding group of medical office assets.”

The four MOBs in the OIA portfolio, which total 51,621 square feet, are 100% leased to Outpatient Imaging Affiliates, the ninth-largest operator of non-hospital imaging facilities in the US. The facilities were constructed between 1984 and 2000, with substantial investments in capital improvements and systems upgrades since 2012.

The Clarksville Surgery Center is a fully leased, 12,656 square-foot freestanding ambulatory surgical facility involving a partnership between United Surgical Partners International (USPI) and St. Thomas Health System. The center is strategically located in a fast-growing market located one hour northwest of Nashville near the Tennessee-Kentucky border.

Hartmann Commons is a one-story, 15,907 square-foot medical office building Lebanon, TN, a growing exurb east of Nashville. The building, constructed in 2013, is anchored by Tennessee Oncology, one of the nation’s largest community-based cancer care specialty groups.

 

Source: HREI

Montecito Medical Buys 221 KSF Nashville-Area Medical Office Building

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Montecito Medical Real Estate has recently expanded its Nashville-area footprint with the acquisition of Murfreesboro Medical Properties LLC, the ownership group of a 221,000-square-foot medical office building in Murfreesboro, Tenn.

Murfreesboro Medical Clinic occupied the entire property. Located at 1272 Garrison Drive, the MOB opened as a 78,000-square-foot facility in 2008 and underwent an expansion in 2013 through a build-to-suit second phase that enhanced the property by 143,000 square feet. In addition to clinic space, the trophy asset houses an ambulatory surgery center with four operating rooms.

“We review over $1.3 billion in assets each month and typically pursue only the top five percent that meet our investment criteria,” Joellyn Shannon, a vice president with Montecito Medical Real Estate, told Commercial Property Executive. “We prefer newer, larger assets that are occupied by dominant physician groups or strong health systems with long-term leases and we will pay-up for these attributes, so the seller will make more money, too.”

The physician leaders of MMC, who had been fielding unsolicited offers for the three-story building since construction of the first phase kicked off in 2007, will not only remain tenants in the building, but they’ll also retain an ownership position as a result of their reinvestment in the entity acquiring the asset.

Bolstering A Premier Portfolio

The Murfreesboro MOB marks one of a handful of purchases Montecito has completed in 2019. The company kicked off 2019 with the acquisition of a 110,000-square-foot medical office complex in Clarksville, just outside Nashville. The company’s other purchases this year include a 30,500-square-foot MOB and surgery center in Bedford, N.H., roughly 50 miles north of Boston, and a 42,000-square-foot MOB in Greenwood, Ind., near Indianapolis. And there’s more to come. Montecito has access to approximately $1 billion in capital for additional investments.

“While there are certainly challenges aggregating a large medical office building/ambulatory surgery center portfolio, Montecito is extremely active in the market,” Shannon said.

Montecito and Murfreesboro Medical Properties relied on Anthony Lunceford, Joe Massa and Woody Widenhofer of Colliers International for representation in the transaction.

 

Source: Commercial Property Executive