Montecito Medical acquires medical office buildings in Richmond, VA

Montecito Medical Real Estate, a US medical office real estate company has acquired three medical office buildings and a medical office condominium located in Richmond, Virginia, for an undisclosed price.

The four properties acquired by the medical office real estate company are Boulders Medical Office Building, Memorial Regional Building, Johnston Willis Medical Office Building, and Prince George Condominium, which together represent a little over 152,000 square feet in medical office space.

All the acquired medical office buildings in Richmond are designated as Class-A office buildings that are located in prime locations and claimed to have almost 100% occupancy rate.

The properties are leased by well-known names in Richmond healthcare marketplace. OrthoVirginia has rented space in all the four buildings, taking up 58% of the total square footage while both Bon Secours Memorial Regional Hospital and Chippenham & Johnston Willis Hospital, owned by Hospital Corporation of America (HCA) rent approximately 20% each.

Bon Secours is a key tenant in the medical office buildings acquired by Montecito Medical in Richmond. Photo courtesy of MONTECETO MEDICAL REAL ESTATE.

While OrthoVirginia provides orthopedic and therapy care through 100 plus physicians and 22 locations, HCA and Bon Secours are healthcare service providers.

Boulders Medical Office located in North Chesterfield, a suburb on Richmond’s south side, has nearly 65,000 square feet of space. The building is located near HCA’s 793-bed Chippenham Hospital, which leases almost half of the building’s rentable area for different services pertaining to sports medicine and physical therapy. HCA also has an advanced orthopedic outpatient surgery center in the Boulders Medical Office which carries out more than 3,600 procedures a year. OrthoVirginia is the other tenant of the Boulders Medical Office.

The Memorial Regional Building in Mechanicsville, a suburb located northeast of Richmond, has OrthoVirginia occupying 45% of the area and Bon Secours the rest of the 59,000 square foot area. Bon Secours provides internal medicine, pharmacy, physical therapy services and sports medicine services while OrthoVirginia offers orthopedic care and physical therapy services in the Memorial Regional Building.

The Johnston Willis Medical Office Building, located on Richmond’s west side, is near the HCA Johnston Willis Hospital and has 18,000 square foot of space. OrthoVirginia rents the entire space providing orthopedic care and physical therapy.

The Prince George Condominium located in Prince George, VA, south of Richmond has nearly 11,000 square foot of rental space. The property acquired by Montecito Medical Real Estate is the largest unit in the condo complex, of which OrthoVirginia orthopedic care provider occupies the entire rentable area, providing orthopedic care and physical therapy.

Chris Conk – a Principal of Montecito Medical, commenting on the 24th medical office acquisition of the medical office real estate company in 2018, said: “We’ve always been very impressed with this real estate, which has been on our radar for about five years.

“We are excited finally to add these stellar properties to our portfolio, which already includes a significant presence in Virginia. Each of the buildings is ideally located on or adjacent to campuses of leading health systems, enabling us to build strong relationships with these providers and further adding to the value and attractiveness of the portfolio.”