Davis acquires Zachary OMF I in Zachary, Louisiana
MINNEAPOLIS (January 16, 2024)—Davis Healthcare Real Estate completed the year-end acquisition of Zachary OMF I, a 24,465-square-foot outpatient medical facility in Zachary, LA, approximately 20 minutes north of Baton Rouge. It represents the firm’s first acquisition in Louisiana. Davis Medical Investors, LLC (DMI, LLC), acquired the property for approximately $8.6 million or $350/SF.
“This is a great opportunity for Davis to acquire a high-quality and well-established outpatient medical facility in an underserved market in Louisiana,” said Stewart Davis, Executive Vice President of Investments, Davis Healthcare Real Estate. “Given the landscape in the area, we believe this will allow us to establish a presence in the marketplace and build scale over time.”
The single-story Zachary OMF I is located at 4845 Main Street in Zachary. The building was developed in 2011 as a local hub for outpatient surgical procedures. At the time of the acquisition, the building was 100% leased to three synergistic tenants: Zachary Surgical Center, Ochsner Health, and Moreau Physical Therapy.
Ochsner Health is recognized as the leading healthcare system in Louisiana, with more than 40 facilities across the state. It uses the space at Zachary OMF for primary care services, women’s health, and ENT. The Surgical Center of Zachary is a well-recognized outpatient surgical center in the area. It completes orthopedic, gastroenterology, podiatry surgical and pain management procedures in the space. Moreau Physical Therapy provides a variety of physical therapy services across Louisiana.
Because of changing market conditions, Davis said the firm is looking optimistically at 2024. “We’re all familiar with the capital market instability that has characterized the HRE landscape over the last 12–18 months and made it challenging to underwrite acquisitions,” Davis said. “But we’re optimistic that there will be more certainty moving forward which will hopefully allow the market to settle into a new equilibrium where we can start getting deals done again.”