ING Clarion in Joint Venture with Montecito Medical to Buy Medical Office Properties; First Acquisitions Exceed $90 Million

In addition, the firms said that they have acquired their first properties – El Dorado in Tucson, Arizona, Vero Beach Medical Suites in Vero Beach, Florida, Gwinnett Medical Office in Lawrenceville, Georgia and Knoll I & II in Columbia, Maryland. The four facilities total 466,000 square feet and were purchased for more than $90 million. Broad Street Advisors acted as an advisor to Montecito in forming the joint venture and as broker on the transactions. Robert Rizzi, Executive Vice President and partner at Broad Street, handled the transaction.

ING Clarion noted a number of significant trends that support the firm’s decision to enter the market for medical office properties. These include the general aging of the population and a corresponding need for more healthcare services; the migration of technology-based services out of the hospitals to specialized providers housed in standalone facilities; and an overall trend towards out-patient care.

Over time, the two firms anticipate building a significant portfolio of medical
property holdings. The new venture plans to expand by acquiring additional existing facilities, investing in properties with the potential for redevelopment and repositioning, and by undertaking new development in selected major medical markets throughout the U.S.

“We believe that medical office properties hold significant promise for investors in many of the portfolios under our management,” said Edward M. Rotter, Managing Director at ING Clarion. “The tenant base is strong and stable, occupancy rates are high, and the current ownership is highly fragmented with few of these properties in the portfolios of institutional investors. We are looking forward to being a part of this exciting new market
opportunity.”