Montecito Medical Makes 1st New Jersey Acquisition

980 Mountain Ave. Image courtesy of CommercialEdge

Montecito Medical has entered the New Jersey market with the acquisition of two medical office buildings in the townships of Livingston and New Providence. The Silverman Group sold the two assets, which total 131,314 square feet, for $40.5 million.

The buildings are fully leased to Summit Health. Medical services provided at the clinics include general pediatrics, neurology, dermatology, endocrinology, ophthalmology, plastic surgery, radiology, gynecology and behavioral services.

Cushman & Wakefield Executive Vice Chairmen Gary Gabriel, David Bernhaut and Andy Merin, Executive Director Frank DiTommaso and Associate Director Max Helfman represented the seller. Principal at Leklen Realty Len Blackman represented the buyer.

The New Providence asset previously traded in 2017 when The Silverman Group purchased the facility from Veris Residential for $5.3 million. The property was also subject to a loan of $10.5 million in 2018, provided by Peapack-Gladstone Bank, CommercialEdge data shows. The 79,278-square-foot Class B property came online in 1977 and underwent cosmetic renovations in 2013. The three-story building offers 26,666-square-foot floorplates, two passenger elevators, controlled access and 308 parking spaces.

Located on a 5-acre site at 980 Mountain Ave., the property is directly across from Summit Health’s main campus, 16 miles from Newark, N.J., and 23 miles from Jersey City, N.J. Other medical providers in the surrounding area include Overlook Medical Center, New Providence Dentistry and The Pediatric Center, among others.

75 E. Northfield Road. Image courtesy of CommercialEdge

The Livingston property encompasses 52,036 square feet and came online in 2015. The Class A, two-story facility offers controlled access, 312 parking spaces, one passenger elevator and includes an urgent care center. The building sits on 4.5 acres at 75 E. Northfield Road, less than 10 miles from Newark, and has access to Interstate 78. Medical providers in the area include Mountainside Medical Center, Cooperman Barnabas Medical Center and East Orange VA Medical Center.

Ongoing expansion into health-care

This spring, Montecito Medical expanded its health-care footprint with three other purchases. The company acquired Banner Health Center in Peoria, Ariz., from Banner Health for $29 million, as well as a 14,600-square-foot medical building in Texas that was completed in 2007.

Montecito recently paid $21.6 million for a 209,000-square-foot building in Roanoke, Va. The property came online in 2021 and is fully leased to Carilion Children’s Clinic.

Established in 2006, the company owns a property portfolio valued at $5 billion across more than 35 states.