SOURCE: Montecito Corporation

March 11, 2008 07:00 ET

Montecito Medical Acquires Medical Office Building

Escondido Medical Arts Building Near San Diego Adds 49,000+ Square Feet to Firm's Growing Medical-Related Assets

SANTA BARBARA, CA--(Marketwire - March 11, 2008) - Montecito Medical Investment Company (MMIC), a premier owner of medical properties throughout the United States, announced today that it has acquired Escondido Medical Arts, a medical building located in Escondido, Calif., 30 miles north of San Diego. MMIC purchased the medical office building, which is 95 percent leased, in a joint venture with Harrison Street Real Estate Capital. Escondido Medical Arts, which is adjacent to Palomar Medical Center, includes a broad mix of medical specialists including family practice, radiology, urgent care, colonoscopy, ear nose and throat, pediatrics, physical therapy, cardiology, eye clinic, gastroenterology, vascular surgery, as well as clinical labs and general administrative suites.

Graybill Medical Group, the largest primary care medical group in the area serving Escondido for 75 years, accounts for the predominant tenants within the buildings. Graybill Medical Group cares for 1 in 3 families in Escondido.

"This acquisition met our key investment strategy because it is located within a growing medical market that is currently underserved by the number of physicians available to treat patients. Our research firm analyzed Escondido's population growth, demographics, the surrounding medical office buildings and more to ensure that this acquisition was sound," said Chip Conk, CEO of MMIC.

This latest acquisition brings to 38 the number of medical office buildings that MMIC has acquired in the last 22 months. The company owns medical office buildings in 12 states with aggressive plans to increase its rate of expansion in 2008 and beyond.

As is standard practice, Montecito Medical Management, LLC, a division of MMIC, will manage and lease the assets in this portfolio, adding value with new medical technologies and inimitable customer service. MMIC recently expanded its technological offerings by acquiring one of the leading medical research firms in the country. The research firm, Montecito Market Research & Analytics, tracks specific markets' propensity for success and potential for the future based on market characteristics, use rates and lifestyle profiles when determining development locations.

"Inland North San Diego County, in which Escondido is at the core, is emerging as a regional economic leader in job development and new industries, with healthcare being a key industry. We look forward to optimizing the Escondido Medical Arts facility so that it offers the most valuable and relevant services to the market," said Conk.

Additional acquisitions will be announced later this month.

Montecito Medical Investment Company

Montecito Medical Investment Company (MMIC) is one of the nation's largest privately held real estate companies specializing in the acquisition and development of hospitals, medical office buildings, surgery centers, long-term acute care facilities and skilled nursing facilities. The firm, headquartered in Santa Barbara, California, partners with medical real estate owners, enabling them to monetize their equity and improve their facilities, technology, and patient care. MMIC owns more than 35 properties in 12 states, representing more than 1.5 million square feet and in excess of $500 million in valuation. For more information, please visit www.MontecitoMedical.com.

Harrison Street Real Estate Capital

HSRE's model is to provide equity capital at the property level to developers and operators in areas of the real estate market in which tenant demand is driving from education, healthcare or storage related activities. These sectors principally include self-storage, student housing, senior housing/assisted living, medical office/healthcare, marinas, related parking and other properties at or near Universities and Hospitals. Harrison Street's inaugural fund has acquired or is in the process of developing over 75 properties in 22 states worth greater than $700 million throughout 20 states in the US. The principals of HSRE bring decades of investment and management expertise in all segments in which the company investments. For more information, visit www.harrisonst.com.

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