Minneapolis-based Davis has acquired the two-story, 42,467-square-foot Woodlake Medical Building in Woodbury, an east St. Paul suburb.
The $18 million acquisition, which closed Nov. 21, is the latest addition to the Davis Medical Investors LLC fund, which now comprises 13 medical office buildings totaling 567,356 square feet.
Stewart Davis, Davis Executive Vice President – Investments, notes that since its inception less than two years ago, the fund has acquired assets in five states, Minnesota, Tennessee, Connecticut, Maine and Ohio, at a total cost of about $230 million.
The most recent acquisition, Woodlake Medical Building, fits the firm’s acquisition criteria for the fund in terms of deal size, property condition, geographic market and location. The MOB also ticks all the boxes on the tenant side, as it is fully leased by three successful and financially strong tenants – Woodlake Surgery Center, St. Paul Eye and Midwest ENT – and all three signed new 15-year leases in conjunction with the acquisition.
Located on 4.73 acres at 2080 Woodwinds Drive in Woodbury’s Eagle-Woodwinds neighborhood, the property is just south of the 86-bed M Health Fairview Woodwinds Hospital and has easy access to Interstate 494 and Lake Drive. It boasts an outpatient surgery center and recently upgraded, digitally controlled VAV and HVAC systems.
Bridgewater Bank provided the financing.