Davis acquired two Minneapolis-area outpatient medical properties totaling $21.85 million and approximately 64,500 square feet for its Davis Medical Investment Fund (DMI Fund).
The acquisitions follow the recently announced refinancing of 19 properties totaling $171 Million with Capital One Healthcare Finance. Leveraging its new $250 Million line of credit, Davis continues to expand the DMI Fund’s investment portfolio, which now includes more than 20 properties totaling nearly 885,000 square feet across eight states.
Plymouth Acquisition
In the larger of the two transactions, Davis acquired 3007 Harbor Lane North, a 30,250-square foot, single-story outpatient medical building in the Plymouth submarket of Minneapolis–St. Paul. The purchase price was $12 Million.
Located near I-494 and Hwy 55, the building complements Davis’s 2024 acquisition of WestHealth. The property was fully renovated and expanded in 2019, adding 15,000 square feet.
At the time of acquisition, the building was 100% leased. Fresenius, a BBB S&P-rated healthcare services provider, anchors the property and occupies roughly one-third of the space, offering nephrology specialty services. Fresenius also renewed its lease earlier this year, improving the building’s overall WALT.
Additional specialties represented in the building include podiatry, OBGYN, and behavioral health services.
Burnsville Acquisition
Davis also acquired the Pondview Medical Building at 501 E Nicollet Blvd in Burnsville. The two-story, 34,224 square foot property was purchased for $9.85 Million, or approximately $288 per square foot.
Located in the Burnsville submarket of Minneapolis–St. Paul, Pondview is adjacent to the Fairview Ridges Hospital campus, where Davis currently leases and manages two outpatient medical buildings.
At the time of acquisition, the building was 100% leased to four tenants, including anchor tenant Southdale Pediatrics. Additional specialties provided at the building include neurology, imaging, and nephrology. Pondview was developed in 2005 and received significant updates in 2024.
