NASHVILLE, Tenn.--(BUSINESS WIRE)--Montecito Medical Real Estate, the nation’s top privately held acquirer of medical office real estate in the U.S., has acquired the medical office portfolio of the prestigious Penn Medicine/Lancaster General Health.
The portfolio involves two adjacent buildings in Lancaster, Pennsylvania. The Class-A medical offices, constructed in 2009 and 1993 respectively, represent a combined total of 41,322 square feet. Both buildings are near Lancaster General Hospital, the flagship facility in the LG Health System.
Lancaster General Health is a member of the University of Pennsylvania Health System (Penn Medicine), with a network of more than 300 primary care and specialty physicians and more than 40 offices throughout the region. Through this affiliation, Lancaster General Health brings together the strengths of a world-renowned academic medical center with a nationally recognized, not-for-profit community healthcare system.
Lancaster General Hospital has been recognized regionally and nationally for clinical excellence and patient safety and was ranked by U.S. News & World Report as one of the nation’s best hospitals in 2016-17.
“We are very excited to partner with such a prestigious name in healthcare in Pennsylvania,” said Chip Conk, CEO of Montecito. “We believe that this transaction reflects a recognition by Lancaster General Health of the advantages that our company can bring to the health system and to practicing physicians.”
Lancaster General Health currently leases 10 percent of one of the two buildings, where it maintains an outpatient surgery center dedicated to pain management and also provides family medicine, physical therapy, EKG, lab testing, and x-ray services. Lancaster General Hospital also provides physical therapy services at the second building.
Lancaster Neuroscience leases 90 percent of the space in the first building and approximately 40 percent of the second building, where it operates a NeuroSpine Center and performs outpatient surgical procedures. The NeuroSpine Center’s proximity to the group’s adjacent main office allows their providers to streamline and centralize patient care in a personalized, efficient way. Neurosurgeons at the NeuroSpine Center are closely affiliated with Lancaster General.
“The proximity to the hospital for these two medical office buildings and ambulatory surgical centers make them ideal outpatient facilities for Lancaster General and fit our strategic objectives,” said Conk. “Lancaster Neuroscience & Spine Associates is the leader in this robust medical market, and we’re excited about the opportunity to help them continue to grow.”
Other tenants for the second building include Lancaster Family Allergy and the MRI Group, which provides MRI and CT imaging.
Montecito Medical is one of the nation’s largest privately held companies specializing in healthcare-related real estate acquisitions and funding the development of medical real estate. Montecito is a leading resource for both real estate owners and healthcare providers seeking to monetize or expand their holdings. Montecito has offices in Nashville, Tenn., Austin, Tex., Portland, Ore., and Orange County, Calif. Since 2005, it has transacted on more than $2.33 billion in medical real estate totaling over six million square feet in 28 states. To date, Montecito has more than $1 billion in capital available to expand holdings in its medical office portfolio throughout the United States. Its current portfolio and healthcare system relationships include UCLA, Cleveland Clinic, Johns Hopkins, Holston Medical Group, Urology of Virginia, OrthoCarolina, Bon Secours, Maine General, Carolinas Health System, EmergeOrtho and State of Franklin Healthcare Associates.
