$31.3 Million Transaction Expands Davis’ Healthcare Portfolio in the Minneapolis-St. Paul Metropolitan Area
MINNEAPOLIS (August 20, 2026) — Davis, a national healthcare real estate investment, development and management firm based in Minneapolis, has acquired a four-building outpatient medical portfolio from Lakeview Clinic for $31.3 million. The 114,346-square-foot portfolio includes properties in Waconia, Norwood, Chaska and Watertown.
The transaction allows Lakeview to monetize its real estate portfolio while maintaining its clinical operations at all four locations. As part of the transaction, Lakeview extended its leases at each property.
Lakeview Clinic is a leading regional multi-specialty medical group serving the western Minneapolis-St. Paul metropolitan area. Founded in Waconia in 1957, Lakeview has grown to 62 providers across four locations offering a broad range of primary and specialty care services.
Davis’ relationship with Lakeview began as a third-party leasing assignment to market the portfolio’s only vacancy, approximately 5,500 square feet in Chaska. Further analysis identified an opportunity to structure a sale-leaseback that aligned with Lakeview’s long-term operational and financial objectives.
“This transaction created meaningful value for both organizations,” said Stewart Davis, Executive Vice President of Davis. “Lakeview was able to unlock the value of its real estate while securing its clinical locations for the long term. For Davis, the acquisition adds a Class A outpatient medical portfolio with strong tenancy in a market we know exceptionally well.”
The acquisition comes as interest-rate uncertainty, changing financing conditions and capital markets volatility make real estate acquisitions more challenging, placing a premium on disciplined underwriting, market expertise and creative transaction structures.
“Team Davis exceeded our expectations throughout this transaction,” said Tracy Rheineck, CEO of Lakeview Clinic. “Their expertise in healthcare real estate, thoughtful guidance, and collaborative approach helped simplify an otherwise complex process. They were a trusted partner at every stage, and we could not have asked for a better team to work with.”
The portfolio includes:
- Lakeview—Waconia, 424 State Highway 5 West, developed in 2025 and 100% occupied.
- Lakeview—Norwood, 406 Faxon Road, developed in 2000 and is 100% occupied.
- Lakeview—Watertown, 313 Territorial Street E., developed in 2019 is 100% occupied.
- Lakeview—Chaska, 110105 Pioneer Trail, developed in 2014. Lakeview is the anchor tenant in the multi-tenant building, which also includes a national oncology group and a local orthopedic practice. The building is approximately 87% occupied. Davis is marketing the remaining space for lease.
The acquisition reflects Davis’ strategy of investing in well-located healthcare properties backed by strong providers and long-term demand for outpatient care.
About Davis
Davis, founded in 1986, is a national healthcare real estate firm offering expertise in development, property management, brokerage, investment, and consulting services to health systems, hospitals, medical groups, and other healthcare organizations. The company has developed over 40 Class A medical buildings totaling more than $500 Million in development costs and completed 60 investment transactions totaling more than $800 Million. Davis has negotiated more than 447 healthcare property leases with an aggregate value exceeding $1.1 Billion. The firm currently owns and/or manages 3 Million sq. ft. of Outpatient Medical Buildings (66 buildings) in 12 states, including MN, IA, IL, MI, OH, TN, CT, ME, AZ, ND, TX, and LA.
For more information, visit www.davishre.com.
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