Investment Opportunities

Only Montecito offers physicians the opportunity to co-invest with us as partners in institutional-quality medical real estate.

The Montecito Medical Physician's Investment Opportunity offers accredited investors a unique opportunity to own part of a portfolio of premier medical office properties.

When the initial investment opportunity launched in July 2019, response from investors was so strong that the offering was fully subscribed in one month, raising $56 million.

Details about the Investment Opportunity

  • The investment opportunity will acquire existing medical office buildings with long-term, triple net leases that typically have rent escalations of 2% to 3% per year.  The tenants in the buildings will have strong credit and will be dominant providers of medical services in the medical market where the building is located.
  • The investment opportunities sponsor, Montecito Medical Real Estate was formed in 2006 to invest in medical office buildings. Since inception, we have transacted on more than $4 billion in medical office real estate.  We are a trusted partner with many of the largest medical practices in the country.
  • The investment opportunity strategically focuses on secondary and tertiary marketplaces where we can buy prime assets at higher cap rates than primary marketplaces. We have a very robust pipeline and expect to have a number of assets ready to close shortly after our initial capital raise.

How the Investment Opportunity Works

  1. Participating physicians may choose to reinvest a portion of the proceeds from the sale of their medical office building. They become general partners in a single-purpose entity for which Montecito serves as managing partners. Montecito charges no upfront fees on these reinvested dollars – so all participants receive the same rate of return as Montecito.
  2. Invested funds are deployed in the purchase of prime medical office properties which Montecito aggregates into a portfolio that is more attractive for large, institutional buyers than individual properties.
  3. Until the portfolio is sold, physician investors receive monthly income distributions. They also enjoy tax deferral benefits on their investment.
  4. Once the portfolio or one-off assets are sold, investors receive their proportional share of the profits.
  5. Based on market conditions, Montecito reserves the right to periodically sell individual properties as a one-off disposition and not part of a portfolio.

Please contact Deanna Farnell, CPA, Montecito’s Fund Administrator, to create your private investor portal. Email: Cell: 805-217-9500


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