Montecito Medical Obtains $50M Loan for MOB Portfolio

First Citizens Bank provided the financing for the properties, which span three states.

Advocate Health building located in Rosemont, Ill. Image courtesy of First Citizens Bank

Advocate Health building located in Rosemont, Ill. Image courtesy of First Citizens Bank

Montecito Medical has received $50.3 million in financing to recapitalize a portfolio of medical office buildings. First Citizens Bank, through its Healthcare Finance group, provided the loan.

The portfolio encompasses seven off-campus medical office properties totaling 200,000 square feet. Located in Florida, Illinois and Pennsylvania, the facilities offer a wide range of medical services including gastroenterology, orthopedic, oncology, laboratory work, ophthalmology, obstetrics and gynecology, among others.

With this current purchase, the company expanded its footprint in Florida as well. Last year in August, Montecito acquired a 37,000-square-foot property in Lithia, Fla., fully occupied under a long-term lease by Orthopaedic Medical Group of Tampa Bay.

Earlier this month, First Citizens Bank provided Montecito Medical another loan of $31.2 million for the acquisition of a 120,000 square-foot medical office building in Columbia, S.C. Spirit Realty sold the cancer treatment center for $48 million.

Starting the year with major deals

Montecito kicked off 2023 in January by selling a collection of 13 properties in eight states totaling 300,328 square feet. A joint venture of Remedy Medical Properties and Kayne Anderson Real Estate paid $131 million for the fully leased assets.

That same month, the company made a portfolio acquisition which consisted of six medical office buildings in Greater Kansas City, Kan., in a sale-leaseback transaction. Discover Vision centers sold the assets totaling 95,759 square feet.

Since its foundation in 2006, Montecito Medical has completed transactions involving more than $5 billion in medical real estate, across 35 states. The company’s medical office footprint encompasses approximately 3 million square feet, CommercialEdge data shows.

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