Davis Refinances Health-Care Portfolio for $171M
The deal also includes a $250 million line of credit.
Davis has completed a $171 million refinancing deal for 19 properties in eight states. In addition, the firm secured a line of credit up to $250 million to strengthen current portfolio economics and support future acquisitions.
Capital One Healthcare, a division of Capital One Commercial Banking, provided the refinancing that covers properties totaling more than 817,000 square feet. Ten of them are in the firm’s home state of Minnesota (326,775 square feet) with three in Tennessee (127,417 square feet) and one each in Connecticut (43,790 square feet); Iowa (60,251 square feet); Louisiana (24,465 square feet); Maine (107,228 square feet); Ohio (55,000 square feet); and Texas (72,390 square feet).
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“While capital markets remain somewhat uncertain, we are encouraged by the stability that this new facility with Capital One provides,” Mark Davis, principal at Davis, told Commercial Property Executive. “We believe that the fundamentals of health-care real estate—and the strong demand for the asset class—remain robust and will continue to create meaningful opportunities in 2026 and beyond.”
Stewart Davis, executive vice president, investments at Davis, said in prepared remarks locking in the multi-year credit facility allows the firm to shift its focus to new acquisition opportunities and fundraising.
More portfolio details
The refinanced 19-building portfolio has an average occupancy of 98 percent and a weighted average lease term of 8.0 years. More than 80 tenants include health-care providers such as M Health Fairview, Hartford Healthcare, University of Texas, University of Iowa, Ochsner and Fresenius.
Here’s a closer look at the assets in the portfolio:
- EastPoint Medical Office Building, Connecticut, 43,790 square feet
- Hartmann MOB, Tennessee, 50,951 square feet
- Smyrna MOB, Tennessee, 37,614 square feet
- Crossings MOB, Tennessee, 38,852 square feet
- TUG, Ohio, 55,000 square feet
- M Health Fairview, Minnesota, 18,672 square feet
- Cornerstone MOB, Minnesota, 52,904 square feet
- Midwest ENT-Vadnais, Minnesota, 12,000 square feet
- Intermed, Maine, 107,228 square feet
- CityPlace I, II and III, Minnesota, 108,212 square feet
- Woodlake, Minnesota, 42,467 square feet
- UT San Antonio, Texas, 72,390 square feet
- Zachary OMF, Louisiana, 24,465 square feet
- Birch Run, Minnesota, 27,944 square feet
- Coral West, Iowa, 60,351 square feet
- Plymouth MOB, Minnesota, 30,352 square feet
- Pondview MOB, Minnesota, 34,224 square feet
The properties are part of the open-ended Davis Medical Investment Fund, a joint venture with Healthpeak that focuses on investing in medical office buildings across U.S. growth markets. The portfolio came together during that time, with some acquisitions made earlier this year.
An owner and developer of health-care real estate
Founded in 1986, Davis is a developer, property manager, brokerage, investment and consulting firm that works with health systems, hospitals, individual medical groups, specialty practices and other health-care organizations. The firm currently owns and/or manages 63 medical office buildings in 12 states.
At the end of 2024, Davis acquired WestHealth, a three-building, 201,000-square-foot outpatient medical center in Plymouth, Minn., for $72 million from Harrison Street Real Estate. It was one of the largest single-asset sales in the Minneapolis/St. Paul market that year. At the time of purchase, the property was 96 percent leased.
On the development side, Davis completed Lakeville Specialty Center, a four-story, 100,500-square-foot Class A facility in Lakeville, Minn., in June 2024. The specialty clinic is fully leased with Allina taking 78,500 square feet and MNGI Digestive Health renting 22,000 square feet.
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