Harpeth Capital Announces the Closing of Montecito Medical Physicians III Fund

Harpeth Capital is pleased to announce the closing of Montecito Medical Physicians III Limited Partnership (“Physicians Fund III”) with commitments of $307,171,000 from investors including prominent physician groups, family offices, and high net worth investors.  Harpeth Capital acted as placement agent for the limited partnership offering.

The medical office market has experienced a significant uptick in interest over the last two to three years, with the pandemic underscoring the resiliency of the asset class.  The combination of Montecito Medical’s strong track record, relationships with providers across the country, and the deepest pipeline in the company’s history led to significant demand in Physicians Fund III that more than tripled the initial target of $100,000,000.  Physicians Fund III has already completed three acquisitions.

The inaugural fund – $55,610,000 in commitments that closed in September 2019 – was sold as a portfolio in Q3 2021 following a brokered process that involved both domestic and foreign parties.  The second fund totaled $82,535,000 and closed in October 2020.  That fund was fully invested as of Q2 2021.

“We are humbled by our partners’ confidence in Physicians Fund III and how our strategy and fund vehicle have resonated with investors,” said Chip Conk, Founder and CEO of Montecito Medical.  “Harpeth Capital was once again invaluable in their role of securing commitments from both legacy investors as well as new pools of capital looking for exposure to a differentiated asset class within income-producing real estate.”

Chuck Byrge, CEO of Harpeth Capital, said, “This is the third fund we have assisted Montecito in raising.  They continue to be best of breed in this asset category and we were honored to present it to our network of investors.”

“The substantial overcommitment is a testament to the performance of the first two funds and their propriety model,” noted Adam Landa, Managing Director of Harpeth Capital.

Based in Nashville, Montecito Medical is one of the nation’s largest privately-held companies specializing in healthcare-related real estate acquisitions and funding the development of medical real estate.  Since 2005, the firm has completed over 350 transactions in 39 states.