SOURCE: Montecito Corporation

June 10, 2008 17:13 ET

Montecito Medical Uses Cutting Edge Market Research to Acquire Specialty Medical Care Facilities in Kansas City, Kansas

Company Acquires Specialty Hospital and Ambulatory Surgery Centers to Enhance Neuro and Ambulatory Surgery Patient Services

SANTA BARBARA, CA--(Marketwire - June 10, 2008) - Montecito Medical Investment Company (MMIC), a premier owner of medical properties throughout the United States, announced today that it has acquired three medical office buildings located in the Kansas City, Kan. metropolitan area. The facilities include a specialty hospital and two ambulatory surgery centers in Leawood, Kan. MMIC purchased the portfolio in a joint venture with Harrison Street Real Estate Capital.

Montecito Medical Ventures (MMV), a division of MMIC established to provide venture capital and partnership opportunities to physician groups in key markets across the country, sourced the deal. MMV focuses on markets where it has determined there is a need for expanded medical services, and where it has identified strong partners in the local health-care provider community.

"As healthcare systems feel financial pressure to renovate their facilities, update their technology and provide state-of-the-art care, they are finding that divesting their real estate to a real estate investment company offers them the capital needed to focus on the business of medicine," stated Michael Burress, managing partner of MMV. "Montecito Medical's investment into the Leawood portfolio represents a trend of healthcare providers monetizing their medical real estate by selling their bricks and mortar asset, leasing it back and retaining operation of the facility, all of which ultimately benefits their patients."

The buildings in the portfolio were all constructed after 2000, and include:

--  A Ambulatory Surgery Center at 4801 College Blvd. with two procedure
    rooms. Medical operations include ambulatory surgery, neurosurgery, MRI and
    CT scanning
--  A Ambulatory Surgery Center at 11120 Tomahawk Creek with four
    procedure rooms. Medical operations include an ambulatory surgery center,
    neurosurgery and MRI
--  An acute care hospital at 4901 College Boulevard with 10 beds and four
    operating rooms
    

"The analysis conducted by our internal research division, Montecito Market Research & Analytics, prior to the investment found that Kansas City is a high-growth market with a growing need for specialized medical care," said Chip Conk, CEO of MMIC. "Our proprietary market research deemed that its location is positioned for maximum success based on Leawood's population growth, demographics, number of specialists, and many additional factors."

MMIC is one of the fastest-growing privately held real estate companies in the nation as this latest acquisition brings to 40 the number of medical office buildings, ASC's and Specialty Hospitals that Montecito Medical Investment Company has acquired in the last two years. The company owns medical office buildings in 13 states with aggressive plans to increase its rate of expansion in 2008 and beyond.

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.

Montecito Medical Ventures

Montecito Medical Ventures (MMV) specializes in identifying, analyzing and funding development and operating partnership opportunities with medical facility operators and physician groups in key markets across the country, seeking to increase their respective financial opportunities and provide quality, state-of-the-art services to patients in need. Based in Dallas, MMV has plans to continue to expand its presence in attractive medical markets that exhibit and are characterized by strong growth opportunities.

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 55 properties 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.

Contact Information

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