News Release
The firm assembled four parcels in a prime location to create a 4.58-acre site for a facility that will house ENT Specialty Care, Surgical Care Affiliates and other leading providers
The planned Class A, 78,996-square-foot Xchange Medical Office building will be in a highly visible, convenient central location in St. Louis Park, Minn. within walking distance of retail, restaurants and entertainment.
MINNEAPOLIS, Sept. 2, 2020 – Seeking a more centralized location to better serve patients throughout the metro area, two of the Twin Cities area’s leading healthcare providers have agreed to anchor the planned Xchange Medical building in St. Louis Park, a western suburb of Minneapolis.
Minneapolis-based Davis has announced that Ear Nose & Throat Specialty Care (ENTSC) and Surgical Care Affiliates (SCA) will anchor the three-story, Class A medical office building (MOB), which will be built at a highly visible, sought-after location, just West of Highway 100 on the south side of Interstate Highway 394.
At 78,000 square feet, Xchange Medical will be another significant development project for Davis, and similar in many ways to the award winning 148,000-square-foot HealthEast Clinic & Specialty Center in Maplewood, Minn., the firm competed in 2017.
Xchange Medical, which will be located at 6111 Wayzata Blvd., will be built on a 4.58-acre site Davis assembled from four separate parcels that currently house vacant office and warehouse buildings, an auto repair shop, and a parking lot.
Davis has owned all four parcels since 2015 but didn’t begin planning for a new MOB on the site until now, according to Mark Davis, Founder and Principal of the national healthcare real estate development, investment, brokerage and property management firm.
Dr. Nissim Khabie, Group President of ENTSC, notes, “The location for Xchange Medical is ideal and we have been talking about it for some time. So when the opportunity came up, it was a perfect fit. We have a large geographic spread in terms of our offices and patient population, and this location is in the center of it.”
He continues, “We are the largest provider of ENT care in the metro area, and the Xchange Medical building will allow us to build an even bigger practice, consolidate several of our specialized services in one space, and provide even more sub-specialized care for our patients.”
“The pandemic provided ENTSC the time and motivation to make a strategic assessment of its entire real estate portfolio to ensure it was optimally positioned for the next 10 years”, Mr. Davis explains. “Davis partnered with ENTSC to provide market and demographic profiles and then developed nearly 20 different scenarios before a consensus formed around the Xchange strategy. Working with the Davis in-house market analysis team and the affiliated Synergy Architecture Studio enabled ENTSC to comprehensively and quickly assess the strategic and financial implications of the various scenarios.”
As noted above, another leading local provider, Surgical Care Affiliates has also leased space in Xchange Medical. SCA was attracted by the opportunity to centralize and expand its existing facility from another city. But while the St. Louis Park location will be new for SCA, the provider’s relationship with Davis is well established. SCA leases space in the Davis-developed HealthEast Clinic & Specialty Center in Maplewood, and some ENTSC physicians are also partners in a surgery center in Edina that is affiliated with SCA.
Michael Miller, Regional Vice President – Minnesota for Surgical Care Affiliates, notes, “We decided to lease space in the Xchange Medical building because we have a lot experience working with Davis and know that they develop state-of-the-art buildings. The Xchange building will enable us to provide a safe, healing and efficient environment so we can take the best care of our patients. It also will be conveniently located and immediately accessible for our patients.”
Together, ENTSC and SCA will lease 60 percent of the MOB, with SCA leasing the entire 27,000 sq. ft. third floor and ENTSC occupying most of the second floor. The project also will include a covered patient drop-off, a healing garden, and a total of 324 parking spaces including 51 underground and 273 surface spaces. The project will feature an attractive and highly functional design, high-quality materials and extensive landscaping.
Davis Principal Jill Rasmussen says the location for the planned MOB will provide many benefits for tenant physicians and staff, as well as patients and their families.
“The new medical building will be convenient, central and easily accessible to the 129,000 cars passing by daily along I-394,” says Ms. Rasmussen. “The site is only five minutes from downtown Minneapolis, and within walking distance from The Shops at West End, which includes a variety of restaurants and retail and entertainment establishments.”
She continues, “In addition, the area has strong demographics and over 1 million people living within a 10-mile radius.”
The St. Louis Park City Council unanimously approved the Xchange Medical project Aug. 17. Davis is currently finalizing construction plans on the MOB, will seek construction bids beginning early this month and expects to break ground in October. Xchange Medical is projected to be completed in late 2021.
Mr. Davis notes, “The site for the new MOB is in a very popular area with limited development sites available along I-394. But by assembling all of the land parcels, Davis will be able to develop a desirable site to make prime medical office space available in this high-demand area.”
Some space is still available in Xchange Medical. Interested healthcare providers are encouraged to contact Jill Rasmussen at jrasmussen@davishre.com or 612-341-3247.
About Davis
Davis, founded in 1986, is a national healthcare real estate firm that offers unparalleled expertise in healthcare real estate development, property management, brokerage, investment and consulting services to health systems, hospitals, individual medical groups, specialty practices and other healthcare organizations. Over the past five years, the company has developed 31 Class A medical buildings totaling $300-plus million in development costs and completed 30 investment transactions totaling more than $500 million. It has also negotiated more than 250 healthcare property leases totaling 1.2 million square feet during that time. For more information, please visit www.davishre.com.
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News Media Contact: Vickie Ridgley, 612-383-2717, vridgley@davishre.com
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