Montecito Lands $66M for Nashville MOB

Montecito Medical Real Estate has obtained $65.9 million from Capital One, according to Yardi Research Data. Proceeds will refinance Murfreesboro Medical Clinic, a 221,000-square-foot medical outpatient facility in Murfreesboro, Tenn.

Previous debt included a $45.5 million loan originated by the same lender in May 2019 that matured earlier this year, Yardi Research Data also shows. Montecito used that note to acquire the asset from Murfreesboro Medical Clinic & SurgiCenter.

The medical office sector saw an 88 percent increase year-over-year in loan originations, according to a second-quarter MBA report. On a quarterly basis, originations grew by 90 percent.

A medical outpatient facility near Nashville

The three-story facility at 1272 Garrison Drive came online in two phases. In 2008, the property opened with 78,000 square feet. The second phase, completed in 2013, added another 143,000 square feet to the building. The tenant roster includes Pediatrix, Murfreesboro Medical Clinic and Results Physiotherapy.

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The 20-acre property is close to Highway 41, some 32 miles from downtown Nashville and 31 miles from Nashville International Airport. Other medical providers in the area include Ascension Saint Thomas Rutherford, the MMC – Westlawn medical center and Lane Dentistry.

Montecito’s U.S. medical office portfolio currently comprises properties in 23 states, including California, Florida and New York. With a focus on acquiring assets from practice groups with 10 to 300 physicians, the firm has purchased more than $6.5 billion in medical facilities since its inception.