Harrison Street, Stonemont Recapitalize Preston Ridge MOB in Alpharetta With Webster Healthcare Financing
Harrison Street Asset Management and Stonemont Financial Group have recapitalized the Preston Ridge MOB, an 84,681-square-foot Class A medical office building in Alpharetta, Georgia, with financing from Webster Healthcare, according to an October 2026 announcement from Harrison Street. The financing supports the recapitalization and a capital upgrade of the property, which is anchored by Northside Hospital.
Preston Ridge MOB Recapitalization: Deal Overview
Webster Healthcare said it supported Harrison Street and Stonemont on the recapitalization and capital upgrade of the building. The property sits adjacent to Northside Hospital's Alpharetta campus, which the announcement describes as an outpatient healthcare destination within one of Metro Atlanta's rapidly growing healthcare corridors.
Stonemont acquired the property in 2023 in partnership with Harrison Street for $34.3 million. The medical office building is on Preston Ridge Road off Old Milton Parkway in Alpharetta. Northside Hospital provides cancer-care services at the building.
The announcement frames the transaction as reflecting Webster's focus on financing medical outpatient properties that support health systems and the communities they serve.
George Ross on the Harrison Street and Stonemont Investment
George Ross, Managing Director and Head of Healthcare Transactions at Harrison Street Asset Management, commented on the partnership in the announcement.
"We are pleased to partner with Stonemont on the investment and appreciate Webster's collaborative approach, healthcare expertise and ability to deliver a financing solution tailored to the needs of the transaction. Preston Ridge is a high-quality medical office asset anchored by Northside Hospital, with durable tenancy and a strategic location that we believe positions the property to deliver long-term value and support our investment objectives," Ross said.
The Parties: Harrison Street, Stonemont and Webster Healthcare
Harrison Street Asset Management describes itself as an alternative global investment management firm with more than $110 billion in assets under management across infrastructure, real estate and credit strategies, as of June 30, 2026. The firm is headquartered in Chicago, Toronto and London and has more than 600 employees. Its experience spans healthcare, senior housing, student housing and other needs-based sectors.
Stonemont Financial Group manages a diversified portfolio exceeding $5 billion in assets under management, according to the firm. Stonemont launched its healthcare platform in 2021, supported by a dedicated team of 12 professionals. The healthcare portfolio has closed approximately $350 million in transactions, primarily across the Southeast, including Georgia, Florida and the Carolinas.
Webster Healthcare served as the financing partner on the recapitalization.
Atlanta Medical Office Market Context
The recapitalization comes as demand for hospital-adjacent outpatient space remains strong in Atlanta. The market's direct medical office vacancy rate declined to 6.6% in the second quarter of 2026 from 7.0% in the first quarter. Net absorption reached 167,720 square feet in the second quarter, and average direct asking rents were $30.34 per square foot annually. In the first quarter, net absorption was 105,522 square feet.
North Fulton and Alpharetta recorded vacancy of approximately 5.7% in one market overview, which also estimated medical office cap rates of 5.8% to 6.9% depending on asset quality, location and tenant credit. Those figures are market-wide estimates rather than metrics specific to Preston Ridge.
On the supply side, a 120,000-square-foot medical office building tied to Northside's Forsyth campus was expected to deliver in late 2026, though broader Atlanta medical office supply has remained limited relative to demand.
Outlook
The Preston Ridge transaction reflects continued sponsor interest in medical office assets affiliated with health systems and located near established hospital campuses.
Sources
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