Driving Montecito Medical Real Estate's phenomenalgrowth is a seasoned collection of professionals led by CEO ChipConk (left) and Chris Conk, principal,acquisitions.

Montecito Medical Real Estate's business model has changed thetraditional relationship between buyers and sellers of medicaloffice properties to one in which sellers can continue to managetheir properties if they choose, maintaining both existing tenantrelationships and an existing revenue stream. In addition, they canopt to reinvest a portion of the sales price as equity in asingle-purpose entity led by Montecito, which becomes the asset'slegal owner.

In short, sellers enjoy both regular distributions and a returnon their reinvestment when Montecito sells the property as well assignificant tax advantages that can be especially valuable to highnet-worth individuals. Sellers have another option as well: theycan co-invest in additional properties that Montecito acquires asit builds a portfolio.

The model strongly resonates with physicians, especially intoday's shifting medical environment. In conversations withphysicians about MOB sale leasebacks of their MOBs, the company hasfound that the opportunities to both reinvest in its own officebuilding and to co-invest in other MOB acquisitions gives it agreater sense of control. Much of the credibility of the model liesin its historical rate of return on its investments, which thecompany says has significantly outperformed both Wall Street andcompetitors in the sector over the past 10 years. For these reasonsthe company has grown dramatically, both in terms of itsacquisitions and its influence on the medical real estatefield.