Montecito Medical Expands Health-Care Portfolio

Banner Health Center. Image courtesy of JLL Capital Markets

Montecito Medical has acquired two medical office buildings in Peoria, Ariz., and Granbury, Texas. The purchases were separate transactions and part of the company’s steady expansion of its health-care real estate portfolio.

Montecito purchased Banner Health Center for $29 million from Banner Health. The property, completed in 1989, encompasses 68,000 square feet across 5.7 acres. The Class B three-story facility features controlled access and includes 308 parking spaces, CommercialEdge data shows.

Located at 13640 N. Plaza Del Rio Blvd., the medical office building is 17.4 miles from downtown Phoenix, close to Arizona State Route 101. Other medical facilities in the surrounding area include Banner Thunderbird Medical Center, Banner Boswell Medical Center and Banner Rehabilitation Hospital West, among others.

JLL Capital Markets represented the seller and procured the buyer. The team included Senior Managing Director Mindy Berman, Director Matt Dicesare and Managing Director John Chun, alongside Executive Managing Director Pat Williams.

Growing a Texas portfolio

Baylor Scott & White Surgicare at Granbury. Image courtesy of Montecito Medical

The Texas property encompasses 14,600 square feet and Montecito purchased the asset from Granbury Health Real Estate, according to CommercialEdge data. Hood County records show that the facility was subject to a $34 million loan with a maturity date set for 2028, provided by First Citizens Bank and Trust Co.

The loan covered two other facilities located in Indianapolis, Ind., and Plano, Texas, the second being a 31,247-square-foot property purchased from Certainty Home Loans.

The Class B building, completed in 2007, includes four operating rooms and offers several medical procedures in gastroenterology, neurology, orthopedics, ENT, ophthalmology and pain management. The facility is fully leased to Baylor Scott & White Surgicare at Granbury.

The property is at 1717 Paluxy Highway, 40 miles from Fort Worth and has access to Highway 377. The facility is less than 1 mile from Lake Granbury Medical Center, with other medical providers in the area including Texas Emergency Medical Service and Epic Orthodontics.

With this acquisition, Montecito expanded its already sizeable Dallas-Fort Worth footprint. Since 2021, the company acquired 15 medical office properties in the area.