CNL Healthcare Properties, Montecito Medical Joint Venture Acquires California Medical Office Building

CNL Healthcare Properties, Montecito Medical Joint Venture Acquires California Medical Office Building

Purchase marks CNL Healthcare Properties entry into medical office space

(ORLANDO, Fla.) Feb. 7, 2013 — CNL Healthcare Properties, a real estate investment offering focused on senior housing and healthcare assets, has acquired a majority interest in the Claremont Medical Plaza in Claremont, Calif., through a joint venture the company formed with an affiliate of Montecito Medical Operating Company, a premier owner of medical properties throughout the United States. The medical office building was purchased for $19.8 million from StoneCreek Company, which will continue to provide property management services.

This is the first medical office building CNL Healthcare Properties has added to its portfolio; the company has also invested in senior housing communities.

“Medical office buildings are a key part of our investment diversification strategy and we believe that the acquisition of Claremont Medical Plaza is an exceptional first step for us as we build out our portfolio,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “With the aging U.S. population spending a growing amount of their income on healthcare and with healthcare services continuing their shift to lower cost, more convenient settings, we anticipate targeted and value-creating investment opportunities for our shareholders to complement our core senior housing focus.”

Claremont Medical Plaza is a two-story, 48,984-square-foot medical office building that was constructed specifically for the Pomona Valley Health System in 2008. The building is currently 89 percent leased, with lease commitments expected to bring the building’s occupancy to 96 percent within the next few months. Pomona Valley Hospital Medical Center, a dominant regional healthcare system with nearly 40 percent local market share, occupies 77 percent of the facility.

The property, which is located approximately 34 miles east of downtown Los Angeles, is within one of the nation’s five largest metropolitan areas. The Claremont submarket has seen considerable growth in recent years, due in large part to growth at the Claremont Colleges, a consortium of seven top-tier higher education institutions. Claremont is one of the nation’s top medical markets, according to proprietary research conducted by Montecito Medical Investment Company.

Montecito Medical Investment Company was established in 2006 by principals with more than 20 years in the healthcare facility investment business. Based in Santa Barbara, Calif., Montecito has invested in, managed and developed more than 50 medical facilities totaling more than 2.5 million square feet and valued at over $500 million.

Montecito purchased its share of the joint venture with CNL Healthcare Properties through its affiliate MMAC Berkshire LLC, a platform established in 2012 with an affiliate of Berkshire Realty Ventures, L.L.C. to form joint ventures with institutional partners to acquire a portfolio of $600 million in medical office properties over the next several years.

“Claremont Medical Plaza not only helps CNL Healthcare Properties drive its investment objectives, it also allows us to create a strategic partnership with Montecito Medical,” Mauldin said. “Montecito and its leadership are very well-respected in the sector and we look forward to an expanding relationship with this dynamic enterprise.”

“Montecito Medical is thrilled to partner with CNL Healthcare Properties in adding Claremont Medical Plaza to our portfolio,” said Chip Conk, CEO of Montecito Medical. “In addition to being located in one of the best medical markets in the country, we value its affiliation with Pomona Valley Hospital. This acquisition fits in nicely with our strategy to acquire and fund development of medical real estate located on-campus, campus adjacent or hub & spoke with ties to strong healthcare systems.”

Financial advisors can contact the managing dealer of the REIT, CNL Securities, member FINRA/SIPC, at (866) 650-0650 (

About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is an investment offering that will seek to acquire properties in the senior housing and healthcare sectors, although it may also acquire other income-producing properties. The company intends to qualify as a non-traded real estate investment trust. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit

About CNL Financial Group
CNL Financial Group (CNL) is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $26 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit

About Montecito Medical
Formed in 2006, Montecito Medical is one of the nation’s largest, privately held companies specializing in acquiring and funding developments of medical related real estate. MMOC is dedicated to being the preferred resource for health care real estate developers, owners and health care systems seeking to monetize or expand their real estate holdings.

Montecito Research and Analytics, a wholly owned subsidiary of Montecito Medical, is a proprietary analysis system comprised of more than 10 terabytes of health care and demographic information. This research platform allows MMOC to drill down through 30,000 zip codes in the U.S. to determine medical market viability as well as providing an analysis of additional physician specialty needs within an individual market. For more information, please visit

About Berkshire Realty Ventures
BRV is an affiliate of The Berkshire Group, a real estate and private equity company with more than 40 years of experience which has raised more than $6 billion in third-party investor equity, and has made more than $10 billion in direct and entity level real estate investments. To learn more, visit

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