On May 3, Montecito Medical, a premier owner of medical office properties throughout the United States, completed the acquisition of a new medical office building located in Hagerstown, Maryland. Julian P. Etches and Joe Donegan of Scheer Partners, Inc., brokered the transaction. Financial terms were not disclosed.
The 20,454 square-foot medical office property is 100% occupied by Hagerstown Heart, the market area’s dominant cardiology practice which is affiliated with Meritus Health, a regional health system that serves patients in Maryland, West Virginia and Pennsylvania.
Located northwest of Washington, D.C., Hagerstown anchors one of the fastest growing metropolitan areas in the nation. The Hagerstown Heart property is situated in a growing medical corridor along a heavily trafficked area of US Route 40, the main highway running through the city. The building is also 1.5 miles from Meritus Medical Center, the 300-bed flagship hospital for Meritus Health.
Montecito Medical is one of the largest privately-held companies that specializes in healthcare-related real estate acquisitions and funding. Since 2006, it has completed transactions involving more than $5 billion in medical real estate across the United States. The group is part of GI Alliance, the nation’s largest network of gastroenterology experts, encompassing physicians at more than 225 locations in 11 states.
According to the LevinPro HC database, this transaction marks the 70th medical office building (MOB) transaction of the year, as well as the 14th transaction of Q2:22. Montecito has been the most frequent acquirer in the space, with 12 MOB deals announced since January 2022, encompassing approximately 489,000 square feet.
This acquisition also marks the second MOB transaction Montecito has made in the desirable Hagerstown area since the start of 2022. In January, Montecito acquired the Trilogy Professional Center, a three-story, multi-tenant building encompassing approximately 54,000 square feet of space. Capital Women’s Care, the largest OB/GYN practice in Maryland, serves as the anchor tenant of the building.
