Varnum advised Davis, a leading healthcare real estate development, investment and management firm, in its $72 million acquisition of WestHealth, a three-building, 201,000 sq. ft. Class A outpatient medical center complex in Plymouth, Minn.
The acquisition of WestHealth marks one of the largest single-asset sales in the Minneapolis/St. Paul market in the past year. The three-building complex, containing outpatient medical facilities, an ambulatory surgical center and an emergency/urgent care facility, elevates Davis’ portfolio of medical buildings.
This transaction reinforces Davis’ presence in the Minneapolis/St. Paul market and provides a stable revenue stream with the property being 96% occupied at the time of acquisition. Allina Health, a major healthcare provider and long-term partner of Davis, occupies 73% of the medical complex.
The Varnum real estate deal team was led by Kevin Macaddino and included Ed Gusky and Lauren Potocsky. Commenting on Varnum’s counsel, Mark Davis, CEO of Davis, said, “Kevin and the team once again provided us with outstanding representation in a complex acquisition with several moving parts.”
“Throughout the transaction, they demonstrated a thorough understanding of the issues at hand while providing strategic guidance and attention to detail. Varnum’s expertise was critical in the successful completion of this deal,” added Davis.