Woodlake Medical Constructing
Davis Healthcare Actual Property has acquired Woodlake Medical Constructing, a 42,467-square-foot property in Woodbury, Minn., by means of its Davis Medical Traders LLC fund. The corporate paid $18 million for Class A asset, with Bridgewater Financial institution offering the acquisition financing. In accordance with CommercialEdge information, the earlier proprietor was MFC Properties.
The 2-story medical constructing got here on-line in 2003 on a 4.7-acre website. The property options an outpatient surgical procedure middle and has a parking ratio of 4.5 areas per 1,000 sq. toes, CommercialEdge information reveals.
Woodlake Medical Constructing was utterly leased on the time of closing. All three tenants—Woodlake Surgical procedure Middle, St. Paul Eye Clinic and Midwest ENT—have signed a lease extension for 15 extra years, along with the acquisition.
Positioned at 2080 Woodwinds Drive, within the Eagle-Woodwinds neighborhood, the asset is 17 miles from downtown Minneapolis and has entry to Interstate 494. M Well being Fairview Woodwinds Hospital is 1 mile south of the constructing. Different medical services within the space embody Minnesota Urology, Well being East Most cancers Care, Reynolds Audiology and Creekview Dental, amongst others.
Well being-care actual property, nonetheless a superb funding
The transaction marks the thirteenth acquisition for the Davis Medical Traders LLC. Established two years in the past, the fund at the moment owns 567,356 sq. toes in property throughout Minnesota, Tennessee, Connecticut, Maine and Ohio, investments totaling roughly $230 million.
Stewart Davis, govt vice chairman at Davis, talked about in ready remarks that, this yr, the corporate acquired 4 medical workplace buildings to date, including to a portfolio wherein the properties are 96 p.c leased.
A JLL report reveals that medical workplace buildings are nonetheless a key various asset class, even when going through sure challenges influenced by financial woes. Regardless, this sector’s fundamentals have been much less disrupted by the pandemic; in 2021 and 2022, absorption outpaced new deliveries and drove occupancy above 90 p.c on a nationwide degree. Gross sales reached $9.2 billion within the first half of 2022 and JLL estimates 2022 to shut at one other report yr.
