FOR IMMEDIATE RELEASE
January 22, 2021
Nashville, Tenn. — Montecito Medical Real Estate, a premier owner of medical office properties throughout the U.S., has completed the acquisition of a state-of-the art ophthalmic clinic and surgery center in Sterling Heights, Michigan.
The 16,709 square-foot facility, built in 1990, is occupied under long-term lease by Vision Institute of Michigan, a leading specialty provider in the suburban Detroit area. The group’s ambulatory surgery center (ASC), Surgery Center of Michigan, accounts for roughly one-fourth of the total square footage in the building.
“Because of its outstanding attributes, we would be excited to own this property regardless of the state where it happens to be located, but this acquisition is particularly special for us because it represents our entry into Michigan, expanding our national footprint to 31 states in which we have owned medical real estate,” said Chip Conk, CEO of Montecito Medical. “We are very happy to be here, and we look forward to realizing even more opportunities in Michigan in the months to come.”
At the Sterling Heights location, Vision Institute of Michigan provides a wide range of services, from eye exams to diagnostic imaging, laser vision correction, cataract surgery and oculoplastic procedures. As part of its commitment to dual sensory wellness, the group also provides audiology and hearing services.
Founded in 1974, the Vision Institute of Michigan has grown to become a dominant presence, rating as the second highest performing practice in Macomb County and posting steady, year-over-year growth in new and total patients. The group, which maintains a team of four ophthalmologists and optometrists and more than 50 staff members, draws patients from a 75-mile radius of Sterling Heights. In addition, a number of outside ophthalmologists perform procedures in the group’s Surgery Center of Michigan, accounting for nearly 25% of the ASC’s procedure volume.
In addition to its medical office and surgery center in Sterling Heights, the group maintains a second clinic location in nearby Macomb.
Sterling Heights, part of an affluent and fast-growing medical marketplace in Macomb County, is the second largest suburb of Detroit and the fourth largest city in the state. It also ranks as the safest city in Michigan and the 6th safest city in the United States, which has spurred development and population growth in this highly desirable location. The city is situated 16 miles north of downtown Detroit.
The property is strategically located just off Michigan Highway 59 in an area known as the “Golden Corridor” because of its volume of commercial development. The five-mile stretch of freeway sees more than 100,000 vehicles per day, has over six million square feet of commercial space — including world-class shopping, dining and retail — and attracts approximately $2.6 billion in annual consumer spending.
Besides being Montecito’s first acquisition in Michigan, the addition of the Vision Institute building accelerates the growth of the company’s footprint in the Midwest. In the previous three months, the company has purchased nine other medical office properties across the region, from Minnesota and Wisconsin to Indiana and Ohio.”
“We are coming off a record month in December for our company, having closed 11 transactions involving 16 properties, which speaks volumes about our dedicated team of medical real estate experts and the professional team at Vision Institute,” Conk said, “and we remain excited about the opportunities in the medical office market. We have a full, robust pipeline as MOB owners continue to look to optimize the value of their real estate in ways that create advantages both now and for the long term.”
The practice and real estate partnerships were advised by Collin Hart and Marc Flynn of ERE Healthcare Real Estate Advisors. “We appreciated the diligence, timelines, and flexibility exhibited by the Montecito Medical team on the purchase of this facility. The end result was another high-quality asset for the Montecito portfolio and a very satisfied physician group,” said Hart. “For physician groups who are strategizing on succession planning, a sale and leaseback transaction is a great solution to explore,” said Flynn.
About Montecito Medical
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., and Orange County, Calif. Since 2006, it has completed transactions in 31 states involving more than $4 billion in medical real estate and totaling over six million square feet. 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, Carolinas Health System, Urology of Virginia, Bon Secours, Maine General, EmergeOrtho and State of Franklin Healthcare Associates.
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