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News Release: Davis adds to growing MOB investment fund with $18 million purchase in Woodbury, Minn.

News Release

With this most recent acquisition, the fast-growing Davis Medical Investors portfolio now includes 13 buildings totaling 567,356 s.f. with a total acquisition cost of $230 million

With the acquisition of Woodlake Medical Building in Woodbury, Minn., Davis Medical Investors Fund now includes 13 buildings in five states totaling 567,356 square feet with a total acquisition cost of $230 million.

MINNEAPOLIS and WOODBURY, Minn., Dec. 7, 2022 – Minneapolis-based Davis has acquired the two-story, 42,467 square foot Woodlake Medical Building in Woodbury, an east St. Paul suburb.

The $18 million acquisition, which closed, Nov. 21, is the latest addition to the fast-growing Davis Medical Investors LLC fund, which now comprises 13 medical office buildings (MOBs) totaling 567,356 square feet.

“The healthcare real estate (HRE) industry is experiencing a slowdown this year, but this acquisition demonstrates that Davis HRE is still actively doing business,” says Mark Davis, Founder and Principal of the national HRE development, investment, brokerage and property management firm.

“In addition to our steady stream of development projects, we continue to make investments like this one, thanks to the strong capital position afforded us by our longtime equity investors as well as a mix of institutional and local lending partners.”

Stewart Davis, Davis Executive Vice President – Investments, notes that since its inception less than two years ago, the fund has acquired assets in five states – Minnesota, Tennessee, Connecticut, Maine and Ohio – at a total cost of about $230 million.

“We have acquired four MOBs so far this year despite the challenging economic environment,” he adds, “and we’re continuing to target high-quality assets that align with our fund objectives.”

Davis has also been highly selective regarding the quality of the assets added to the fund, he says, noting, “Across the portfolio, the MOBs are 96 percent leased with nine years of weighted average lease term (WALT) remaining.”

The most recent acquisition, Woodlake Medical Building, definitely fits the firm’s acquisition criteria for the fund in terms of deal size, property condition, geographic market and location. The MOB also ticks all the boxes on the tenant side, as it is fully leased by three successful and financially strong tenants – Woodlake Surgery Center, St. Paul Eye and Midwest ENT – and all three signed new 15-year leases in conjunction with the acquisition.

Located on 4.73 acres at 2080 Woodwinds Drive in Woodbury’s Eagle-Woodwinds neighborhood, the property is just south of the 86-bed M Health Fairview Woodwinds Hospital and has easy access to Interstate 494 and Lake Drive. It boasts an outpatient surgery center and recently upgraded, digitally controlled VAV and HVAC systems.

Bridgewater Bank provided the financing.

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. The company has developed 35 Class A medical buildings totaling $380-plus million in development costs and completed 49 investment transactions totaling more than $618 million. 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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