36,100-SF Medical Development is anchored by Midwest Surgery Center
MINNEAPOLIS (June 13, 2024)—Davis has announced the formal opening of Eagan Specialty Center, a 36,100-square-foot Class A surgical facility at 2975 Holiday Court in Eagan, MN. The building is the new home of Midwest Surgery Center, which occupies 27,000 square feet.
“This is the culmination of an extensive real estate needs analysis designed to solve complex operational issues for Midwest Surgery Center,” said Michael Sharpe, Principal, Davis. “This building was meticulously designed and constructed to enhance patient flow and surgeon performance, while also supporting a diverse range of patients in the Twin Cities metropolitan area.”
Midwest Surgery Center, a local Ambulatory Surgery Center (ASC) located in Woodbury, MN, was faced with the issue of whether to expand its existing space or build a new facility to meet market demand. Midwest Surgery is a joint venture between St. Paul Eye Clinic and Midwest ENT. Both practices had worked with Davis over the past five years on developing and executing individual real estate strategies.
The Board of Midwest Surgery engaged Davis to evaluate their options and make appropriate recommendations. According to Sharpe, the two primary facility challenges facing Midwest Surgery Center were a lack of capacity and an outdated atmosphere. While expanding and upgrading the existing facility seemed to be the quickest and more cost-effective solution, the Midwest Surgery Center board determined that the building’s age, the level of renovations needed and the disruption to daily operations made that path too problematic.
“Working with senior leadership, Davis examined myriad issues faced by the medical practices and determined that a new facility offers many advantages over a renovation,” Sharpe said. “After a detailed market analysis and review of multiple comparative cost models, the Board concluded that the opportunity to develop a second center was economically and operationally superior to just expanding and upgrading the existing site.”
The Davis team also overcame several challenges in the development of the facility, including finding a site that fit the client’s geographic objectives and preferred cost parameters. These goals were achieved by executing all elements of the project in-house, creating an efficient budget and finding competitive project financing.
Davis further reduced the cost structure by oversizing the building by 9,000 square feet to help spread the fixed costs over a larger basis. That 9,000-square-foot space is currently being marketed for lease by Anne Madyun a Vice President of Brokerage at Davis.
The design and construction team for Eagan Specialty Center included: Synergy Architecture Studio and Timco Construction.
For more information, please contact:
Kari Little, Davis
612.961.1481 klittle@davishre.com
About Davis Healthcare Real Estate
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 more than 36 Class A medical buildings totaling $450-plus million in development costs and completed 59investment transactions totaling more than $759 million. It has also negotiated more than 447 healthcare property leases with an aggregate value in excess of $1.1 billion. The firm currently owns and/or manages 63 Medical Outpatient Buildings (MOBs) in 12 states across the US including concentrations in MN, IA, IL, MI, OH, TN, CN, MN, AZ, ND, TX and LA.
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