Medical firm buys auxiliary building on Kaweah Health campus

Facility housing Kaweah's Health's employee health unit and pharmacy is purchased by Tennessee-based Montecito Medical

Montecito Medical has acquired this building on Kaweah Health's downtown campus but the hospital will continue to rent space for its employee health unit and pharmacy.
Montecito Medical has acquired this building on Kaweah Health's downtown campus but the hospital will continue to rent space for its employee health unit and pharmacy.
Karis Caddell
Published July 19, 2023  • 
11:00 am

VISALIA – Montecito Medical has purchased a building on Kaweah Health’s downtown campus where the public hospital rents space for its employee health unit and pharmacy.

Montecito Medical, a medical real estate acquisition firm based in Tennessee, recently purchased the 32,300-square-foot, multi-story building located next to the hospital on the Kaweah Delta Medical Center campus in downtown Visalia.

“We’re very supportive. We look forward to this (change) increasing the access to care for our community,” Kaweah Health’s senior communications specialist Maria Rodríguez Ornelas said. “We have the only level-three trauma center in our area, and we’re hoping that this will help improve access to care for patients because we see patients from all across the Central Valley.”

Ornelas explained that the previous majority owner of the building was a local family, while Kaweah Health was a minority owner thanks to a generous donation. Once the local family decided to sell, Montecito Medical purchased the building.

Montecito Medical stated that the purchase will not impact the work of the hospital. Kaweah Health also confirmed they will continue to be a tenant of the building, and plans to open new clinics within the building in the future. According to chief strategy officer Marc Mertz, Kaweah Health’s plans to open new clinics in the building will bring much-needed access to care – particularly specialty physicians within the community.

“The location, immediately adjacent to the medical center, is extremely convenient for patients and physicians,” Mertz said. “We are supportive of Montecito acquiring the building and look forward to providing greater access to excellent healthcare in Visalia and our surrounding communities.”

In an emailed statement, Montecito Medical stated they had been in conversations with the property owners for a number of months prior to the closing of the transaction. 

“We are thrilled to add this outstanding, on-campus medical real estate asset to our portfolio and look forward to building a relationship with Kaweah Health, which serves patients across Tulare and Kings Counties,” Rus Gudnyy, senior vice president of investments at Montecito Medical said in a press release.

Montecito Medical confirmed that they have also acquired medical office real estate in Bakersfield, in the Central Valley as well as other parts of California, including Chico, Redding, and Walnut Creek. They also stated that they deemed Visalia a great location opportunity for their company.

Montecito Medical also said that they are always looking for real estate opportunities that involve secondary and tertiary markets, particularly when the buildings are tenanted by market-leading provider groups.

Karis Caddell