Healthcare Real Estate Insights (HREI) recognized a project of Minneapolis-based Davis, a national healthcare real estate firm, as Best New Development, Medical Office Buildings and Other Outpatient Facilities, of the Year for 2024 for the Eagan Specialty Center at 2975 Holiday Court in Eagan, Minnesota.
The HREI Award acknowledged Davis and Eagan Specialty Center, in the 25,000-square-foot to 49,999-square-foot category, for the overall quality of the development project and the creative and strategic approach taken by Davis in executing a real estate solution. The new home of Midwest Surgery Center, Eagan Specialty Center is a 36,100-square-foot (net rentable) Class A surgical facility. It was completed in mid-2024.
“From initial consultation through completion, the Eagan Specialty Center project demonstrated how Davis doesn’t approach an assignment looking for a development opportunity but instead responds by identifying client needs and achieving a strategically conceived outcome,” said Mark Davis, Davis. “We are humbled to be recognized for the accomplishment, but even more proud of the results we were able to achieve.”
Midwest Surgery Center, a local Ambulatory Surgery Center (ASC) located in Woodbury, MN, was faced with the issue of whether to expand its existing space or build a new facility to meet market demand. Midwest Surgery is a joint venture between St. Paul Eye Clinic and Midwest ENT. Davis has previously developed and executed individual real estate strategies with both practices.
Davis was engaged to evaluate options and make appropriate recommendations. With a lack of capacity and an outdated atmosphere, the quickest and more cost-effective solution would have been to expand and upgrade the existing facility. However, the building’s age, level of renovations needed, and disruption to daily operations made that path too problematic.
Some of the greatest challenges in developing a new facility for Midwest Surgery Center were financial in nature. Davis solved many of those challenges by finding a site that suited the client’s geographical objectives and preferred cost parameters and executing all elements of the project in-house. This involved creating an efficient budget and finding competitive project financing.
Perhaps the most creative solution, derived from completing various cost modeling scenarios, however, was oversizing the new building by 9,000 square feet which would help spread fixed costs over a larger basis. By expanding the size of the building, Davis was able to reduce Midwest Surgery Center’s lease rate by approximately $5.00 per square foot.
Eagan Specialty Center was meticulously designed and constructed to enhance patient flow and surgeon performance, while also supporting a diverse range of patients across the Twin Cities.
According to the leadership team at Midwest Surgery Center, one of the things that sets Davis apart in the medical sector is its knowledge and understanding state and federal laws and regulations that are critical in the accreditation and licensure processes. “Their knowledge and expertise provide tremendous value and long-term sustainability,” they said
The design and construction team for Eagan Specialty Center included: Synergy Architecture Studio and Timco Construction.
