On May 11, Montecito Medical announced that it acquired two medical office buildings (MOB) outside of Rochester, New York. The two properties, which are in Penfield, are 100% leased to University of Rochester Medicine (UR Medicine). UR Medicine is one of the largest healthcare systems in New York and consists of almost 1,500 beds and more than 1,000 specialists.
Montecito Medical is one of the largest privately-held companies specializing in healthcare-related real estate acquisitions and funding. Since 2006, it has completed transactions across the United States involving more than $5 billion in medical real estate.
The acquisition continues the expansion of Montecito’s footprint in Western New York. In the past six months, Montecito also acquired two medical office properties in suburban Buffalo. Vanguard Realty Advisors facilitated the off-market transaction of the two Penfield properties. The terms of the deal were not disclosed.
This is Montecito’s 15th transaction since the start of 2022 and the 73rd medical office building acquisition of the year. Altogether, the acquired properties of 2022 deals amount to more than 6.8 million square feet. Of those 6.8 million square feet, Montecito is responsible for acquiring 513,859 square feet. The largest deal that Montecito has done to date was the acquisition of one Beachwood, Ohio medical office building totaling 69,800 square feet for $58.25 million.
A large acquirer in the MOB space this year is Welltower Inc. that acquired a nearly 510,000-square-foot MOB portfolio in Birmingham, Alabama for approximately $148 million. The transaction adds four facilities to Welltower’s portfolio and strengthens its presence in the state.
Another active buyer this year has been Kayne Anderson Real Estate Advisors with three transactions totaling almost 1.2 million square feet across 20 facilities. For more information about medical office building transactions, visit LevinPro HC.
