Nashville, TN — For a third consecutive year, Nashville-based Montecito Medical Real Estate has been named as a “Key Influencer” in Healthcare Real Estate.
The national recognition came from the editors of Real Estate Forum and GlobeSt. Partners, which publish an annual list of influencers in specific areas of real estate that include healthcare, retail, industrial and multifamily housing.
Real Estate Forum’s Influencers Series spotlights professionals, teams and companies that have made an indelible impact on their respective lines of business through their contributions to the industry, successes they have achieved or the innovations and best practices they’ve introduced.
“On behalf of our entire team, we feel incredibly honored that respected industry experts have named our organization as a key influencer in our field for three years in a row,” said Chip Conk, CEO of Montecito Medical. “We regard it as a tribute to our continuing commitment to create wins in the medical office space for physician groups, health systems, developers and commercial real estate brokers.”
In selecting the finalists for the Healthcare Real Estate Influencers list, the editors reviewed a considerable number of qualified individuals, teams and firms from across the United States. The winners are profiled in the November/December of Real Estate Forum that was released late last week, and online at GlobeSt.com.
GlobeSt.com, together with its print publication, Real Estate Forum and the RealShare Conference Series, reaches more than 250,000 professionals across all markets, sectors and business disciplines.
Montecito has been recognized for pioneering an innovative approach to sale-leaseback transactions involving medical office real estate. Under the company’s distinctive model, physicians and developers can reinvest a portion of the sale proceeds into the property, gaining tax advantages and recurring income streams. When the property is eventually sold, as part of a portfolio, participating physicians receive a share of the profits that is directly proportional to their investment.
Based on the popularity of the reinvestment program, in July 2019 the company launched the Montecito Medical Physician’s Fund, a first-of-its-kind vehicle that enabled individual physicians to invest in portfolios of prime medical office properties and ambulatory surgery centers on terms that previously had been available only to large, institutional investors. Response to the initial offering was so strong that the Fund was fully subscribed in three weeks. A second Physician’s Fund, launched in 2020, also was quickly 100% subscribed. “Our company’s mission is to take care of the physicians who take care of all of us, and the Physician’s Funds are one way we live into that mission,” Conk said. “In fact, the Funds are a direct outgrowth of listening to physicians, who told us they would welcome additional opportunities to invest in medical real estate.”
For developers, who are seeking to keep pace with the high demand for new medical office properties, Montecito’s approach to take-out partnerships provides new capital they can use to undertake new MOB projects and make the most of opportunities created within the emerging healthcare real estate environment. Like physician sellers, these owners can choose to reinvest a portion of the sale proceeds back into the property.
Commercial real estate brokers have also become more likely to bring potential deals to Montecito because of the popularity of the company’s pioneering model among physicians and developers.
Based on data from Real Capital Analytics, Montecito was the nation’s top privately held acquirer of medical office real estate in 2016 and 2017. In 2018, the company shattered its previous record for the third consecutive year, then set yet another new mark in 2019.
“Our approach has always been fairly simple — to build lasting relationships that treat owners and brokers of medical office properties not as participants in a transaction but as long-term partners in our mutual success,” Conk said. “The healthcare real estate market continues to validate our model, and we believe that has helped our company enjoy another outstanding year in 2020.”
