Healthcare Real Estate Insights, a leading publication in the industry, recognized Montecito’s prolific acquisition activity in an article that appeared on June 21.
Montecito remains bullish on MOBs
Firm recently acquired seven assets totaling about 239,324 s.f.
Among Montecito's recent acquisitions was this three-story, 79,278 s.f. foot MOB in New Providence, N.J. The price was $24.64 million, according to RevistaMed data.
SIX STATES – A slow MOB sales market during the past six months or so has not slowed one of the sector’s most prolific private investors.
Nashville, Tenn.-based Montecito Medical Real Estate has acquired 68 MOBs for a total of about $685 million during the past 12 months, according to data from HRE research firm RevistaMed, including 15 MOBs for at least $120 million since March 31.
The past few weeks have been an especially busy time for Montecito which, according to news releases from the firm, has acquired seven MOBs with a total of about 239,324 square feet in New Jersey, New York, Georgia, Kentucky, California and Virginia.
The largest of the recent purchases took place in northern New Jersey, part of the Greater New York metro area, where Montecito paid $40.45 million to acquire a two-MOB, 131,314 square foot portfolio. Montecito acquired a 52,036 square foot MOB at 75 E. Northfield Ave. in Livingston for $15.8 million, according to RevistaMed data, and added a 79,278 square foot MOB at 890 Mountain Ave. in New Providence for $24.64 million.
The seller of both buildings was Basking Ridge, N.J.-based Silverman Group, which owns a portfolio of 25 million square feet of commercial space in 25 states.
According to a New York-area team with Cushman & Wakefield (NYSE: CWK), which brokered the sale and represented Silverman, the MOBs are fully leased to locally based Summit Health, “a physician-driven, patient-centric network formed by the 2019 merger of Summit Medical Group … and CityMD, an urgent care provider in the New York metro area.”
Cushman’s team comprised Gary Gabriel, Frank DiTommaso, David Bernhaut, Andy Merin and Max Helfman. Len Blackman of locally based Leklen Realty represented Montecito.
“This was a strategic transaction for both the seller and the buyer,” Mr. DiTommaso said. “It’s exciting to be able to continue to execute on behalf of The Silverman Group as they expand nationally and focus on growing their industrial and multifamily platforms across the country, while simultaneously bringing new entrants like Montecito into the northern New Jersey market.”
Rus Gudnyy, Montecito’s senior VP of investments, noted that the firm is “delighted to acquire these outstanding medical real estate assets in the gateway market to New York City and for the opportunity to build a long-term relationship with one of the area’s top providers.”
Full Article on HREI.com