Category: Featured Development

In the heart of one of the metro’s most exclusive real estate markets, a story of perseverance and innovation unfolded. For nearly a decade, Davis had been searching for the perfect site to develop a Class A medical outpatient building in the bustling suburb of Wayzata. This market, chronically underserved for 25 years, desperately needed a new healthcare hub but land opportunities were minimal and highly priced. Consequently, when a unique specialty opportunity presented itself on the highly visible main street of Wayzata Boulevard, Davis jumped at the opportunity to make this vision a reality.

Having envisioned the full circle deployment of a state-of-the-art medical outpatient facility in this location for years, Davis desired to do more than just create a beautiful building; We sought to drastically improve healthcare delivery for the entire community. For decades the Wayzata market was predominately consolidated under the umbrella of a large health system utilizing restrictive leasing practices to maintain its regional monopoly. In order to provide an environment in which specialty physician groups could thrive, Davis promised to deliver an inviting and sustainably built structure with ample exterior signage and fully customizable tenant spaces that provided optimized patient care. With Davis’ extensive clinic relationships and marketing strategies, we were able to secure a clinic tenant partner and another specialty clinic to start the formal development planning of the projected 16,000 SF building in the fall of 2021.

Developing the Wayzata site wasn’t without its challenges. Having previously housed a gas station, the site required over $800,000 worth of environmental clean-up work before construction could begin. Scrupulous restructuring of the land parcel was also required for the project to offer a suitable amount of patient and provider parking spaces due to a steep 50-foot drop into a creek watershed present at the back of the site. Undeterred by the challenge, the Timco Construction team moved mountains – literally – importing over 80 tons of soil to stabilize the parking grade and bring the project up to code.

Today, Wayzata Specialty Center provides a contemporary medical space that seamlessly fits in to the high-end vibe of its surroundings while also standing out in the pristine elegance that accompanies new construction. Patients and visitors are greeted initially by the building’s visually striking brick and wood exterior and elongated two-story glass windows. Once inside, a unique live moss display and cascading natural light gently guides them towards their intended destination. This welcoming atmosphere has encouraged a complimentary array of premiere specialty providers to expand into this community, and the building is currently 100% leased to Lorenz Clinic, Tailwind Pediatric Dentistry, LAK Med Spa and Minneapolis Integrative Medicine.

The project’s success led it to win numerous awards in 2023, including the prestigious Medical Project of the Year Award by NAIOP. But for the Davis team, the real reward was in seeing their long-held vision become a reality. Wayzata Specialty Center stands as a testament to what can be achieved with vision, perseverance, and a deep understanding of community needs. It’s not just a building; it’s a new chapter in Wayzata’s healthcare story.

The Lakeville Specialty Center development showcases strategic foresight and adaptability in real estate, delivering essential healthcare services to an underserved and rapidly growing suburban area. Acquired on a speculative basis, the site was tailored to accommodate the specific requirements of MNGI Digestive Health and Allina Health. Despite significant design and approval challenges, the development successfully met the evolving needs of these key clients.

The Lakeville Specialty Center is a testament to the power of strategic foresight, patience, and adaptability in real estate. In July 2021, Davis acquired the Lakeville site on a speculative basis, recognizing its potential in a market underserved by specialty care providers. Despite its strong demographics, considerable size, and prime location along Highway 35, Lakeville lacked sufficient medical services, forcing residents to travel to Burnsville, Edina, or Minneapolis/St. Paul for specialty care. The site at 185th Street was strategically chosen for its proximity to Highway 35, providing excellent visibility and accessibility for future patients and providers a like.

At the time of purchase, Davis anticipated that the market and site would eventually align with the needs of one of its clients. This prediction proved accurate when MNGI Digestive Health expressed interest in the location. Acting as a strategic real estate partner, Davis collaborated with MNGI to develop a comprehensive market coverage plan. This included opening a new site in Maple Grove, closing a St. Paul surgery center, and expanding into Lakeville.

To meet MNGI’s needs, a 50,000-square-foot medical office building was designed, although MNGI initially required only 22,000 square feet. The decision to oversize the building was made to provide MNGI with a better cost structure and create additional space for complementary medical services. Before the design was finalized, Allina requested an additional 75,000 square feet within the complex for additional services to be offered by MNGI. Consequently, the building’s size was increased to 100,000 square feet while adhering to the original timeline set by MNGI. This expansion required Davis to work diligently with their design partner, Synergy Architecture Studio, to swiftly redesign the building, secure Allina’s approval, negotiate a lease, and obtain city approvals.

To accommodate the increased building size, Davis needed a creative solution for the required parking. They considered both a parking ramp and underground parking. Despite the latter being significantly more expensive (around $6 million), Davis opted for underground parking to preserve the building’s aesthetics, without altering the deal structure with MNGI.

The Lakeville Specialty Center opened on December 15th 2023 right on schedule as planned with MNGI. For MNGI and Allina, it stands as the crown jewel among their clinics. For Davis, the Lakeville Specialty Center is a showcase of our ability to exceed customer expectations while navigating numerous development challenges. These included holding land, redesigning the building from 50,000 to 100,000 square feet, securing neighborhood and city approvals on a tight timeline, designing and constructing an underground parking garage, and maintaining lease rate commitments despite rising interest rates and construction costs.

In the ever-evolving realm of healthcare, envisioning the future and daring to venture into the unknown are the cornerstones of innovation. The development of 610 Medical epitomizes this spirit—where strategic foresight, inventive problem-solving, and a dash of calculated risk have redefined healthcare accessibility in the northwest metro area.

In 2020,  Allina Health embarked on a strategic partnership with SCA Health to establish a network of ambulatory surgery centers (ASC) across the Twin Cities. The project presented a dual challenge: creating a cutting-edge ambulatory surgery center designed for scalability and future growth, while concurrently establishing a model that could be effortlessly replicated across various sites in the future. Davis successfully responded to SCA’s Requests for Proposals in three separate market areas: Lakeville, Vadnais Heights and Brooklyn Park.

In response to the RFP to developers for a medical office building in the Northwest market corridor, Davis proactively secured an ideal site in Brooklyn Park–a 7-acre parcel with convenient interstate access.

Recognizing the promise of the selected site, Davis chose to acquire double the necessary acreage, seizing the opportunity amidst market speculation, even in the face of high-interest rates and complex leasing dynamics. While only four acres were required for the 41,000-square-foot MOB development, the surplus acreage held potential for future expansion or sale. Despite the bold move to proceed with construction in a market grappling with a 30% post-pandemic increase in material costs, Davis’s decision showcased strategic foresight. With just 18,500 square feet pre-leased, committing to construction at only 45% occupancy marked a bold diversion from their usual strategy of waiting until the facility is 70% pre-leased before breaking ground.

Working in collaboration with Allina and SCA Health, a successful leasing strategy followed suit. This strategy specifically targeted healthcare groups that aligned with and complemented the planned ASC. Notably, this involved the successful pursuit and strategic lease negotiation with Minnesota Urology, an existing tenant in another property owned by Davis. Simultaneously, Allina approved an additional 7,500 square foot lease for their orthopedic team, resulting in comprehensive healthcare services. This value-driven approach effectively addressed a market gap, while meeting the needs of the surrounding community.

Featuring split-face stone walls, expansive glass windows, and metal panel insets, the design seamlessly complements its eco-friendly ethos. Engineered with top-notch insulation, glazing, mechanical, plumbing, and lighting systems, 610 Medical surpasses current energy standards. Additionally, the majority of the Allina/SCA surgery suite embraces DIRTT, a sustainable prefabricated interior solution. The integration of medical gas components, custom graphics, video and communication systems is executed seamlessly within the space. These collective strategies work harmoniously to enhance the overall patient experience and foster a conducive environment for healing and recovery.

In its role as a regional hub, 610 Medical has transcended the expectations of a traditional multi-specialty medical building, attracting patients from a wider market area with its diverse physician specialties. By establishing a new standard for healthcare real estate and development, the facility not only delivers accessible healthcare services but also makes a meaningful contribution to the local economy through the creation of high-paying jobs.

In navigating the dynamic healthcare landscape, adaptability and strategic vision have been pivotal to 610 Medical’s success. Beyond being a structure, it stands as a testament to Davis’ unwavering commitment to innovation and transformative healthcare solutions for the community. The story of 610 Medical reflects a vision brought to life, demonstrating the profound possibilities that arise when dedication meets innovation and tenacity.

Nestled in the heart of St. Louis Park, the Xchange Medical building stands as a testament to the harmonious fusion of building development and architectural excellence. This Class A medical building spans a sprawling 78,000 square feet across 4.6 acres, strategically located adjacent to I-394. It’s not just a building; it’s a carefully curated compilation of best-in-class healthcare services that came to life after six-years of meticulous analysis and strategic planning. In November 2021, Xchange Medical opened its doors, ushering in a new era of innovative healthcare solutions.

Today, Xchange Medical hosts an ensemble of complimentary healthcare services. It’s home to a full-service Ear, Nose, and Throat practice (ENTSC), an exquisite surgery center featuring six state-of-the-art operating rooms (SCA), specialized ophthalmology services (Retina Consultants), and a cutting-edge laser practice (OVO Lasik + Lens). Notable amenity spaces include a serene 5,000 square feet exterior healing garden, a two-story living wall that breathes life into its interior, and an overarching design presence that effortlessly merges timeless elegance with modern aesthetics.

The transformation of the Xchange Medical site is nothing short of awe-inspiring. What once stood as dilapidated structures and a concrete parking lot has evolved into a community beacon of progress. Its location adjacent to I-394 posed a visible challenge that required the expertise of a seasoned development firm. In 2015, Davis seized the opportunity by acquiring four strategically positioned land parcels, waiting patiently for the perfect match between potential and need. In 2020, ENTSC sought a consolidated location with superior access and visibility. This was just the beginning, as interest from other stakeholders swiftly followed suit, culminating in the grand opening of Xchange in November 2021 with almost full occupancy.

Green initiatives were a foundational element in bringing the vision for Xchange Medical to fruition. Abundant natural light floods the space through expansive floor-to-ceiling windows, creating an instinctive connection to the surrounding community, while seamlessly merging the indoors with the outdoors. High-efficiency mechanical systems and low VOC finishes were carefully chosen to maximize efficiencies, while minimizing carbon emissions. Overall sustainable strategies aimed to achieve high-performance in health outcomes, maximize comfort for occupants, all while improving building performance.

Today, Xchange Medical stands as a testament to the power of collaboration. With every element thoughtfully crafted, it radiates a promise of progress and continued innovation, and a commitment to community well-being.