Minneapolis-based Davis, a national healthcare real estate firm, completed $171 million refinancing and a line of credit up to $250 million to strengthen current portfolio economics while also positioning the firm for sustained growth in the years ahead.
The arrangement with Capital One Healthcare, a division of Capital One Commercial Banking, covers 19 properties that total more than 820,000 square feet of space in eight states, including Minnesota, Iowa, Maine, Connecticut, Ohio, Tennessee, Louisiana and Texas.
Additional characteristics of the 19-building portfolio covered by the refinancing include an average occupancy of 98% and a weighted average lease term (WALT) of 8.0 years. Nearly 30% of the space occupied in the portfolio is leased by credit-rated tenants. Across the portfolio, the properties have more than 80 tenants including prominent healthcare providers such as MHealth Fairview, Hartford Healthcare, University of Texas, University of Iowa, Ochsner, and Fresenius.
Earlier this year, on behalf of its open-ended Davis Medical Investment Fund (DMI), Davis acquired a two-building, 88,295-square-foot healthcare real estate portfolio commonly known as CoralBirch with assets located in Coralville, Iowa and Maplewood, Minnesota. The combined purchase price was $34 million. More than 70% of space in the buildings is leased to high-credit hospital systems.
At the end of 2024, Davis acquired WestHealth, a three-building, 201,000-square-foot outpatient medical center in Plymouth, MN. The portfolio, located at 2805, 2855 and 3005 Campus Drive, comprises two outpatient medical buildings, an ambulatory surgical center (ASC) and an emergency/urgent care facility. The acquisition, at nearly $360 per square foot and an overall price of $72 million, was one of the largest single asset sales in 2024 in the Minneapolis/St. Paul marketplace. At the time Davis acquired the asset, the portfolio of buildings was 96% occupied.
