Why developers of medical office properties are developing strong relationships with Montecito.
When they enter into a takeout deal with Montecito, developers of medical office buildings gain a world of new opportunities.
- They free up equity for developing new properties.
- They get top dollar.
- They can avoid fees by selling directly to us.
- They gain tax savings under the structure of our takeout deals.
- They can reinvest in the property they just sold.
- They can co-invest in other properties that we acquire.
- They can maintain existing revenue streams from their property.
We’re not the only company in this field. But our TOPS program offers advantages you may not find anywhere else.
Through Montecito’s unique Take-Out Partnerships (TOPS), we create relationships with developers by which we acquire existing medical office properties and provide them with valuable advantages in return. How we do it makes all the difference — which is why our distinctive approach is becoming extremely popular.
- Drawing on our expertise in the medical real estate space and our proprietary research and analytics platform, we will work with you to establish a take-out price for your medical real estate when you obtain a Certificate of Occupancy.
- When Montecito acquires the property, you will have the option to become part of a limited partnership that will become the legal owner of the building. Then you may reinvest a portion of the sale price as equity in the property. The reinvestment is structured as a tax-free contribution, creating significant tax savings for you.
- The property will become part of a larger portfolio of medical office buildings over an acquisition and investment period that typically lasts 3-5years. During this holding period you will receive regular distributions with no added fees.
- After the hold period (generally between 4 and 10 years), Montecito will sell the assets to an institutional buyer. (Typically, we will sell the entire portfolio, because portfolio sales have historically commanded a cap rate premium when compared to the sales of individual assets. However, Montecito also reserves the right to sell assets individually.) Upon disposition, you receive the return on your reinvestment commensurate with the percentage of your ownership of the property.
In addition to reinvesting in their properties through the TOPS program, Montecito enables developers to co-invest in other medical office properties that the company acquires. Here’s how co-investing with Montecito works:
- Individuals from the sellers’ group who meet the income/net worth criteria to qualify as “accredited investors” may co-invest in additional MOB properties that the company will acquire. These accredited investors become part of a limited partnership or limited liability company. The individual investors will have the opportunity to invest, at their discretion, in new MOB assets that Montecito acquires.
- During the holding period, co-investors receive regular distributions from the limited partnership.
- They receive the return on their investment when Montecito sells the property (typically between four and ten years after acquisition).
How developers benefit from TOPS
- You receive regular distributions based on the amount you invest.
- Under the program structure, investors enjoy significant tax advantages.
- You can continue to lease and manage the property, maintain existing revenue streams and relationships with tenants.
- You receive a return on your investment when Montecito sells the property.
- By co-investing with Montecito in additional high-quality medical office buildings you can diversify your investments in medical real estate.
Enhance your access to capital.
Montecito can fund the equity that developers need for joint venture projects in healthcare real estate. And because of our relationships with some of the nation’s largest funders, we can provide access to capital that may be considerably less expensive than what is generally available in lending markets.
We’re proud of our record of helping developers.
Since 2005, Montecito Medical has earned a reputation for helping physician groups and developers gain both immediate and lasting benefits. We invite you to read a few case studies.
Montecito Medical Real Estate
3100 West End Avenue,
Nashville, TN 37203
© Copyright 2019 - MONTECITO MEDICAL REAL ESTATE
SVP Acquisitions / Principal