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Med Office Daily - June 25, 2025

Med Office Daily - June 25, 2025

Montecito acquires Chandler Pavilion. Encore buys Dallas MOB. McKinney starts $190M expansion. Sutter starts $145M Folsom complex. Gantry lands $5M for San Tan MOB. Six new MOB deals.

Matt H & Maham Riaz
June 25, 2025

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NEWS ROUNDUP

ACQUISITION: Montecito Medical acquires Chandler Medical Pavilion for $30M in Chandler, AZ. Fully leased to Banner Health, the 65,931 outpatient facility includes an ASC with three ORs, imaging, cardiology, and specialty clinics. JLL Capital Markets represented the seller, a joint venture of Unbound Development and Webb Investments. Built in 2021, the asset sits near Banner Ocotillo Medical Center with strong access to Loop 202.

ACQUISITION: Encore Enterprises acquires commercial MOB in Dallas. The 61,356 SF, two-story, Class B medical office building at 16980 N. Dallas Parkway was sold for $7 million. Encore Enterprises secured financing through Cadence Bank. Built in 1985 and renovated in 2015–2017, the building is 58.2% leased and will also serve as Encore’s new corporate headquarters. Bharat Sangani represented Encore while Sam Manohar represented Cadence Bank in the transaction.

DEVELOPMENT: Medical City McKinney undergoes $190M campus expansion. The campus will add two stories and 46 beds to its east tower, with construction starting in August and completion expected by late 2026. A $25 million upgrade to the Women’s Hospital includes new C-section and labor suites, finishing in early 2027. A new 125,000 SF medical office building, costing $50 million, will open this summer. The projects are part of Medical City Healthcare’s $1.5 billion capital plan.

DEVELOPMENT: Sutter Health breaks ground on $145M Folsom Care Complex. The 106,500 SF, three-story facility, located along the Highway 50 Corridor will offer expanded primary and specialty care, a new outpatient surgery center, and a full-service Sutter Advanced Cancer Center. Part of Sutter’s regional expansion plan, the project is being developed in partnership with Elliott Homes within the Broadstone community. Warner Thomas, Rachael McKinney, and Dr. Karun Grossman represented Sutter Health while Price Walker represented Elliott Homes in the ceremony.

FINANCING: Gantry secures $5M refinancing for San Tan MOB in Gilbert, AZ. The fully leased, 22,200 SF Class A facility, completed in 2021, is adjacent to the expanding Dignity Health Mercy Gilbert Hospital campus. The five-year permanent loan, placed with a correspondent life insurance company lender, features 30-year amortization, non-recourse terms, and prepay flexibility. Gantry’s Adam Parker and Chad Metzger represented the borrower, a private investor, and will service the loan.