The Escondido Medical Arts building is a two-story, cass A assetthat was built in 1994 and is 95% leased to 14 tenants, accordingto Craig Romer of Delray Beach, FL-based Dockerty Romer & Co.Romer arranged a $10.7 million, five-year nonrecourse loan fromWells Fargo Bank as acquisition financing for the purchase. Romernotes that despite the turbulent credit markets, the financingclosed within three weeks of the time Wells Fargo was presentedwith the deal.

The acquisition by Montecito and Harrison follows an announcement by the twofirms last fall that their venture plans to acquire and developa portfolio with a value of more than $500 million in a period oftwo to three years. The Escondido Medical Arts property, situatedclose to the 319-bed Palomar Medical Center, also includes acovered parking garage for 241 vehicles. Buyer Montecito Medicalowns medical office properties totaling more than 1.5 million sfand in excess of $500 million in valuation.

Chip Conk, CEO of Montecito, comments that the acquisition "metour key investment strategy because it is located within a growingmedical market that is currently underserved by the number ofphysicians available to treat patients."This latest acquisitionbrings to 38 the number of medical office buildings that MMIC hasacquired in the last 22 months.