Davis Medical Investors Acquires Eight-Property Medical Office Portfolio for $112M
MINNEAPOLIS — Davis Medical Investors LLC has acquired an eight-property, 309,735-square-foot medical office portfolio for $112 million. The Minneapolis-based buyer acquired the assets through a new fund backed by Capital One.
Three of the buildings were purchased from Davis Medical Investors-affiliated partnerships and the other five were acquired from undisclosed, third-party sellers. The portfolio comprises three properties in Minnesota, three in Tennessee and one each in Ohio and Connecticut.
The acquisitions in Tennessee and Connecticut represent Davis Medical Investors’ entry into those markets. The portfolio was 99 percent leased at the time of sale with an average lease term of more than eight years. The buildings in the portfolio are an average of 10 years old.
According to Mark Davis, founder and managing partner at Davis Medical Investors, the fund will be able to acquire more than 20 medical office buildings totaling up to $240 million.
“Despite some of the acquisitions being temporarily put on hiatus because of COVID-19, we stayed in close contact with the sellers to ensure we successfully brought these deals to fruition,” says Stewart Davis, executive vice president of investments at Davis Medical Investors.
The properties in the portfolio include:
- M Health-Fairview in Minneapolis, which is fully leased and totals 18,672 square feet;
- Cornerstone Medical Office Building in Woodbury, Minn., which is fully leased and totals 52,904 square feet;
- Midwest Ear, Nose & Throat Specialists in Vadnais Heights, Minn., which is fully leased and totals 12,000 square feet;
- Hartmann Medical Office Building in Lebanon, Tenn., which is 93 percent leased and totals 50,951 square feet;
- Smyrna Medical Office Building in Smyrna, Tenn., which is 96 percent leased and totals 37,566 square feet;
- Crossings Medical Office Building in Tennessee, which is fully leased and totals 38,852 square feet;
- The Urology Group Medical Office Building in Cincinnati, which is fully leased and totals 55,000 square feet; and
- EastPoint Medical Office Building in, Manchester, Conn., which is fully leased and totals 43,790 square feet.
Davis Medical Investors was founded in 1986 and offers healthcare real estate development, property management, brokerage, investment and consulting services to health systems, hospitals, individual medical groups, specialty practices and other healthcare organizations.
— Alex Tostado