Montecito Medical, a premier owner of medical office properties throughout the U.S., has completed the acquisition of two medical office buildings in Fairfield County, Connecticut, tenanted by Orthopaedic Specialty Group.
The two properties — in Fairfield and Shelton respectively — offer a combined total of 113,000 square feet, leased primarily to Orthopaedic Specialty Group (OSG) for a 20-year term.
“We like to focus on building long-term relationships with dominant providers with outstanding properties in dynamic and growing medical marketplaces, and this outstanding portfolio meets all of our key criteria,” said Chip Conk, CEO of Montecito Medical. “We are pleased to expand our presence in Connecticut and look forward to building on our relationship with Orthopaedic Specialty Group in the years to come.”
At the 46,593-square-foot medical office in Fairfield, constructed in 2018, OSG provides a variety of clinical, imaging and physical therapy services. The building includes a surgery center and one of the group’s OrthoFast walk-in clinics, where patients can receive care without an appointment for sports-related injuries, sprains, dislocations and fractures.
The larger of the two facilities in Shelton, with two stories and a total of 54,745 square feet, is used by OSG for clinical, x-ray imaging, physical therapy, an OrthoFast clinic, and administrative services. Yale New Haven Health leases 4,354 square feet of the building that houses an internal medicine clinic where primary care physicians diagnose, treat and manage a number of acute and chronic conditions.
OSG is the dominant orthopedic specialty group in Fairfield County, with roots in the community that extend back to the years following World War II. Today, the group includes nearly 30 physicians dedicated to musculo-skeletal care in the fields of orthopedic surgery, neurosurgery, interventional pain management, physiatry, primary non-operative sports medicine, podiatry and chiropractic. In addition to the locations in Fairfield and Shelton, the group maintains offices in Bridgeport and Milford and an OrthoFast walk-in clinic in Monroe.
“It was great to work directly with the physicians and leadership of OSG to conclude this mutually rewarding transaction,” said Tyler Rhoades, Director of Business Development for Montecito Medical. “We look forward to building on our partnership with them and to expanding our growing presence in the Northeast.”
“The relationship that has developed between OSG and the leadership team at Montecito has resulted in a well-done and mutually beneficial transaction,” said Steve Fiore, Chief Executive Officer of Orthopaedic Specialty Group. “It will allow OSG to remain in a solid position for years to come.”
With a population of 943,000 in 2019, more than 25 percent of Connecticut’s residents live in Fairfield County, in which both the Town of Fairfield and the Town of Shelton are located. The county also experienced the highest rate of growth in Connecticut during the past decade. According to the U.S. Census Bureau, Fairfield County in 2019 enjoyed a median household income in excess of $95,000, more than $30,000 higher than the national average.
The Fairfield property is advantageously situated with direct access to Interstate Highway 95 and the Metro North Railroad, with service to New York City. The interstate highway separates a busy commercial area where the OSG facility is located from a major residential area of the city that adjoins Fairfield University. The Shelton property is located on River Road (State Highway 110) adjacent to several large residential neighborhoods.
The OSG properties are the second acquisition in Connecticut for Montecito in the past 12 months. In July of 2020, the company acquired a property in Farmington leased to the Center for Advanced Reproductive Services.