Davis closes two fourth quarter medical office acquisitions to cap a successful 2018
Minneapolis-based Davis is ending 2018 with a bang.
The national healthcare real estate (HRE) development, property management, brokerage and investment firm acquired three Class A medical office buildings (MOBs) totaling 220,000 square feet for a total of $79 million during the past six months, in addition to developing three new MOBs totaling 81,000 square feet during the year at a cost of $25.4 million.
“As we close out 2018, we are pleased with our acquisition and development volume. In fact, the results exceeded our expectations,” Davis Principal Mark A. Davis says. “These properties are occupied by a diverse group of high-quality healthcare providers and are located in growing areas of the country. They’re also providing much needed healthcare services to their local communities.”
• Davis closed this month on the 55,000 square foot Class A The Urology Group (TUG) medical building at 2000 Joseph E. Sanker Blvd. in Cincinnati. Built in 2012, the MOB is 100 percent leased by TUG, which signed a 15-year lease. TUG is one of the largest urology groups in the United States.
• In October, the firm acquired a 104,897 square foot medical building from Northern Ohio Medical Specialists (NOMS). Located at 3004 Hayes Ave. in Sandusky, Ohio, the MOB houses a diverse group of multi-specialty physicians from one of the largest physician groups in the country.
• In late June, Davis closed on the 60,000 square foot Mercy Coral West Medical Building at 2769 Heartland Drive in Coralville, Iowa, near Iowa City. It was the firm’s first healthcare real estate transaction in Iowa. Tenants include OB GYN Associates of Iowa and Coralville, Mercy Urgent Care, Mercy Internal Medicine, Mercy Occupational Health, Corridor Radiology, Progressive Rehabilitation Associates, Professional Foot and Ankle Care, and Mercy laboratory services.
Two of Davis’ 2018 developments were the CityPlace medical building in Woodbury, MN, and the HealthEast Clinic – Vadnais Heights, MN.
• Davis delivered the largest multi-specialty medical facility in the Minneapolis-St. Paul metropolitan area in 2018: the new 50,607 square foot CityPlace medical building at 237 Radio Drive in Woodbury, Minn. The anchor tenant, Minnesota Gastroenterology (MNGI), selected Davis’ proposal as it offered the most attractive cost structure and fastest completion timeline, and the proposed location provided optimal access and visibility. Construction began in September 2017 and was completed in June 2018. The new MOB is part of the vibrant, mixed-use CityPlace development featuring hotels, retail, restaurants, medical offices and other high-end businesses, which will increase MNGI’s exposure in an already booming area.
• The 18,667 square foot HealthEast Clinic – Vadnais Heights, Minn., which is located at 480 Highway 96 East in the St. Paul suburb of Vadnais Heights. The clinic offers a range of services and specialties, including family medicine, prenatal and OB/GYN care, podiatry, medication therapy management, diabetes education and access to all HealthEast services. Davis developed the MOB with features and amenities suggested by patients to improve their experience. This included additional space for families, greater patient privacy and additional parking. Construction started in Nov. 2017 and was completed this July.
• Davis also developed the 12,000 square foot, single-tenant Midwest ENT building, which is located at 3590 Arcade St. in Vadnais Heights, Minn. Construction began this April and the MOB opened in October. Midwest ENT offers multiple ear, nose and throat services, including hearing aid systems, allergy and asthma treatment, and facial plastic surgery and aesthetic skin care. The project marked the development of the last parcel of privately owned vacant land in the City Center’s southwest sector. The freeway-oriented commercial zone encompassing all four quadrants of the County Road E interchange has become a major retail and hotel destination since it was first proposed in 1988.