Davis 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, Minnesota.
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.
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.
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.
