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$50.3 Million Financing Provided To Montecito To Recapitalize Medical Office Building Portfolio

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First Citizens Bank just announced that its Healthcare Finance group, part of the CIT division, provided $50.3 million in financing to Montecito Medical Real Estate to recapitalize a portfolio of medical office buildings.

The portfolio consists of an aggregate of 200,000 rentable square feet across seven off-campus medical office buildings located in Florida, Illinois and Pennsylvania. The properties serve a wide range of medical practices including gastroenterology, ophthalmology, obstetrics and gynecology, orthopedic, oncology, laboratory work and more.

“We appreciated the opportunity to again work with the knowledgeable and efficient Healthcare Finance team at First Citizens Bank,” said Chip Conk, CEO of Montecito Medical Real Estate. “We’re pleased to add these seven properties, which are spread across a number of growing locations, to our overall portfolio.”

“Montecito Medical Real Estate is a valued client and we’re pleased to partner with them to provide financing for this unique portfolio of medical office buildings,” said William Douglass, managing director and group head for Healthcare Finance.

“This transaction exemplifies our focus on building strong relationships with our clients to support them through their various business endeavors,” said Steve Reedy, a managing director in Healthcare Finance.

Healthcare Finance, part of First Citizens’ CIT division, provides comprehensive financing and banking solutions to middle market healthcare companies across the U.S. By using a client-focused and industry-centric model, Healthcare Finance can tailor its products and services to help clients meet their needs for capital.

 

Source: PR Newswire

Montecito Medical Acquires Medical Office Building In Dallas

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Montecito Medical, a leading acquirer of medical office properties nationwide, has completed the acquisition of a medical office property in the Dallas suburb of Plano, Texas.

The 31,247 square-foot building is tenanted by five medical providers and anchored by Dallas Neurological and Spine..

“We are delighted to acquire yet another high-quality medical office asset in the DFW Metroplex, where we have completed a number of other acquisitions over the past two years, and are even more excited to begin a long-term relationship with the highly respected providers who serve patients from this property,” said Rus Gudnyy, Senior Vice President of Investments at Montecito Medical.

During its 50 years of serving patients, Dallas Neurological & Spine has become a national destination for those in need of expert care. In addition to its Plano office, the group’s team of renowned, fellowship-trained neurosurgeons deliver care from locations in north Dallas and Frisco. Sixteen miles north of downtown Dallas, Plano is an affluent community of 284,000, making it one of the 10 largest cities in Texas.

In the past two years, Montecito has acquired 15 medical office properties across the Dallas-Fort Worth Metroplex.

“We continue to build a very strong presence in this area, and continue to be excited about the number of provider groups interested in partnering with us both to make the most of their real estate and to access AI-powered technology solutions to reduce costs, increase revenues and better serve patients,” said Chip Conk, CEO of Montecito Medical.

 

Source: Valdosta Daily Times

The Next Big Thing In Real Estate Investment: Small Businesses, Including Physician Offices

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Small businesses, including physician offices, are the new targets for real estate investors, according to The Wall Street Journal.

Property investors traditionally steered clear of properties housing small businesses because they are riskier; it’s more likely small businesses than big chains will shut down or stop paying rent, according to the Journal.

But a new breed of investors are seeing big opportunities in buying up single-tenant properties where tenants agree to share more information with landlords and prices are typically lower. Keyway, a New York City-based firm, is focused on buying medical office buildings and leasing them back to physicians, which have a lower risk of vacancy than restaurants or retail stores, according to the report.

Keyway has bought around $50 million worth of properties since its founding in 2020 and is in talks to spend another $200 million.

Montecito Medical Real Estate has also built a strategy around acquiring medical office space, with recent transactions including a $12 million building in Chesterfield, Va., and a $21 million building in Virginia Beach, Va., housing both an orthopedic and gastroenterology practice.

 

Source: Becker’s ASC Review