Rogers developer Hunter Haynes has sold two medical office buildings to privately held real estate investment firm Montecito Medical Real Estate for $15.9 million.
The buildings at 1000-1002 S. 52nd St. west of Interstate 49 in Rogers total 35,743 square feet and will remain fully occupied by Mercy Health of Northwest Arkansas under long-term leases. Mercy provides internal medicine, rheumatology and outpatient orthopedic services at the site, including minimally invasive joint constructed replacement and spinal procedures through an ambulatory surgery center.
Haynes acquired the land (3.65 acres) in 2015 for $2.31 million and developed the property the following year.
“It was an easy decision to work with Montecito,” Haynes, owner of HCH Consulting, said in a statement. “They are experienced, straightforward, and very professional. Their team really knows what they are doing, and the whole process was smooth with an easy close — the way it should be.”
The purchase price for Montecito equaled $445.54 per square foot. Capital One provided a $27.2 million mortgage to the buyer. The acquisition represents Montecito’s first property in Arkansas. The company maintains headquarters in Nashville, Tenn.
“We are very excited about acquiring this outstanding property in one of America’s fastest growing markets and also by having as our tenant one of the nation’s most respected health systems,” Montecito CEO Chip Conk said. “This transaction reaffirms our strong commitment to the medical office segment at a time when many health systems are looking to redeploy capital now locked up in their real estate assets to meet present needs and build for the future.
“Even as a number of potential buyers of medical office properties have moved to the sidelines in the wake of the national health emergency, we have the capital to continue making quality acquisitions such as this one, and we are ready to step in and help providers make the most of their medical real estate.”
Since 2005, Montecito has completed transactions involving more than $3.8 billion in medical real estate and totaling over six million square feet. 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.