Montecito Medical Acquires Medical Office Building and Surgery Center in Cleveland Market
Nashville, TN — Montecito Medical Real Estate, a premier owner of medical office buildings throughout the U.S., has acquired the Chardon Surgery Center, a Class-A medical office and surgery center in the Cleveland metropolitan area.
The nearly 24,000-square-foot facility is located in Chardon, a community approximately 30 miles northeast of downtown Cleveland.
The Chardon Surgery Center, which is 100 percent occupied, was built in 1998 and features three operating rooms, a laser surgery center, and a full array of imaging modalities, including a newly built MRI center. The multi-specialty, ambulatory center, which occupies one-third of the overall space in the building, is jointly owned by Precision Orthopaedic Specialties and Kellis Eye Center, which lease the remainder of the building’s space.
“We are pleased to finalize the strategic acquisition of the first-class Chardon Surgery Center,” said Chip Conk, CEO of Montecito Medical. “It has all the key attributes we look for in a property: an outstanding facility, prime location, high and stable occupancy rates and tenants that are leading providers in the market area. The center is a strong addition to our growing portfolio of medical office real estate, and represents an important expansion of our presence in this state.”
Montecito Medical established itself in Ohio through a previous transaction on an asset in which Cleveland Clinic was a tenant and a 4-building portfolio in Akron totaling 180,000 square feet. Earlier in October, Montecito also completed the acquisition of a market-leading orthopedic and spine center in the Cincinnati area.
For Montecito, the Chardon Surgery Center transaction represents the 19th acquisition of 2018. For the past two years, the company was ranked by data provided by Real Capital Analytics as the nation’s largest privately-owned buyer of medical office buildings. Montecito is on pace in 2018 to more than double its acquisition volume from the preceding year.
Precision Orthopaedic Specialties, which occupies 48 percent of the building, has been a leading provider of orthopedic and sports physical therapy services in the Cleveland area since 1991. The Chardon Surgery Center is the main office for the seven physicians in the practice, who also see patients in two other locations in the area. The practice has been recognized for excellence in its respective specialties, which include orthopaedic surgery, sports medicine, joint replacement, podiatry, hand surgery and pain management.
Kellis Eye Center, which occupies 18 percent of the building, was founded by Dr. Augustine Kellis, a pioneer in his specialty. In addition to the main Chardon location, Kellis’ practice operates in six satellite locations in Sandusky, Youngstown, Cleveland, Warren, Canton, and Independence.
About Montecito Medical
Montecito Medical is one of the nation’s largest privately held companies specializing in healthcare-related real estate acquisitions and funding the development of medical real estate. Montecito is a leading resource for both real estate owners and healthcare providers seeking to monetize or expand their holdings. Montecito has offices in Nashville, Tenn., Austin, Tex., Portland, Ore. and Orange County, Calif. Since 2005, it has completed transactions in 27 states involving more than $2.8 billion in medical real estate and totaling over six million square feet. To date, Montecito has more than $1 billion in capital available to expand holdings in its medical office portfolio throughout the United States. Its current portfolio and healthcare system relationships include UCLA, Cleveland Clinic, Johns Hopkins, Holston Medical Group, Carolinas Health System, Urology of Virginia, Bon Secours, Maine General, EmergeOrtho and State of Franklin Healthcare Associates.
Contact: Joellyn Shannon, VP Marketing & Strategic Initiatives