News Archives | Healthcare Real Estate Services | Davis

Material Thinking and Visual Translations

It is no mystery that the work of an architect is highly visual and sensory. The products of our work are inherently physical. Yet while the results of these efforts are the spaces we live within and around, our earliest products are mere representations of spaces that may be.

The ‘studio’ approach to design Synergy has embraced makes it possible for us to explore our work through cooperative physical and digital fabrication methods. Our practiced methods of design allow us to efficiently create flexible representations that provide a platform for both immediate modification by members of our team and direct feedback from our clients.  

We have brought forward modes of timeless architectural design exploration such as massing models, sketches, and physical material palettes to our daily process and updated them to allow for the flexibility we seek when working with our clients and construction partners. These early methods of thinking through materials and testing the practical relationships of spaces are then translated into immersive visual renderings that allow for a more holistic understanding of the atmosphere we are pursuing. Qualities of light, material, proximity, and scale can all be more concretely understood through three-dimensional renderings. We can then produce a series of static material-clad renderings, 360-degree panoramic views, and digital walk-throughs to provide us with experiences of the spaces before they are even built.

Along with using these renderings to provide ourselves and our clients with an understanding of a space, we also use them to provide confirmation to contractors of their understanding of our drawn details. These 3D panoramic views provide a way for contractors to see the finished product they aim to construct, meaning fewer questions in the field and a more unified vision for what the built goals are.

To facilitate seamless accessibility, our views are shared through user-friendly web links or scannable QR codes.

For ease of use, no specialized software is necessary, enabling easy distribution via email. For our contractors, QR codes are effortlessly integrated into job sites and embedded within construction documents, ensuring constant accessibility for our valued partners.

Visit our YouTube Channel for Video Walk-throughs:https://www.youtube.com/@synergyarchitecturestudio3762

Hearts & Hammers Volunteer Event

Hearts & Hammers

We are excited to share a story that exemplifies the spirit of community and the Davis Difference. The Davis Team is committed to volunteering our time and talents throughout the year. This fall, Davis connected again with Hearts & Hammers, an organization close to our hearts. Hearts & Hammers is an organization committed to providing exterior home improvement assistance for Senior Citizens, Disabled Individuals, and Veterans of the United States Armed Forces or their Surviving Spouse so that they may continue living independently.

Our story involves an incredible 50-year-old woman in Brooklyn Center. This resilient mother has faced her fair share of challenges, especially after a stroke left her physically limited. Despite her determination to repair the home herself, the past few years have been a tough journey filled with medical hardships and the pressing need for home repairs. Her lawn was overgrown, and the house needed new paint. Looking for resources to help, she contacted Hearts & Hammers. We were presented with her story through our previous affiliation with the program and immediately began compiling resources and volunteers to help.

Davis reached out to our trusted partners, Timco Construction and Synergy Architecture Studio, and we were thrilled to have them on board. We had one day to complete our makeover and we were bound and determined to bring this home back to life. The exterior of the house and garage were cleaned and painted grey to match the other houses in the neighborhood. The homeowner’s vision was to ensure that her house harmoniously matched the charming character of her community.

While one dedicated crew was hard at work transforming the home’s exterior, another crew took on the landscaping challenge. The crew tackled the overgrown branches and weeds that had taken over every side of the home and garage. Once that was completed, their focus shifted to the front of the home. Two rows adjacent to the front sidewalk received special attention. The team meticulously cleared and prepared the area. They planted vibrant flowers and added a fresh layer of mulch, all in preparation for the upcoming fall season.

The finished makeover was met with overflowing gratitude and literal tears of joy. This service project enabled us to witness together the incredible impact of teamwork, and perseverance. This wasn’t just a house makeover; it was a profound gesture of community. As we witnessed the incredible impact of volunteers, we were reminded that small actions can have a big impact. The Davis Difference is not just about one person; it’s about what we can achieve when we come together as a community.

How to Help
  1. Volunteer
  2. Consider volunteering your time and skills to Hearts and Hammers. Your contribution can change lives and brighten communities.

  3. Donate
  4. Your financial support can help fund vital home restoration projects. Every dollar counts.

  5. Spread the Word
  6. Share this story and the mission of Hearts and Hammers with your friends, family, and colleagues. Together, we can create a ripple effect of positivity and kindness.

Hearts and Hammers

Robust New and Renewal Leasing Activity Continues

In the midst of slowdowns within healthcare real estate development and investment sales, the leasing landscape for medical spaces continues to thrive. Although telemedicine has carved its niche, there remains a steadfast demand for treatment within physical medical facilities. Minnesota has a particularly robust healthcare ecosystem that includes several strong health systems and independent clinic groups that collectively continue to fuel our leasing activity. The activity we’re seeing is comprised of:

New Leasing

Numerous medical groups are expanding their footprint by establishing additional locations. Others are strategically assessing their real estate portfolios, opting to consolidate and amplify their presence in successful market areas. Patient experience is paramount, and with current challenges in the labor market, so is staff experience. Many groups acknowledge that their real estate choices can significantly influence both. They are opting to lease space within high-quality, conveniently situated healthcare facilities.

Renewals

Groups often find themselves content in their existing space and decide to extend their lease. Conversely, certain groups grapple with financial constraints that impede immediate expansion or relocation. While construction cost fluctuations and supply chain issues have eased post-pandemic, they continue to present challenges. Paired with current high interest rates, these factors can make the process of moving and constructing new clinic spaces particularly challenging. While Landlords are happy to keep their tenants, they have less flexibility to negotiate rental rates than in the past. Publicly traded real estate investment trusts (REITs) may be the most constrained, as they are driven by Wall Street’s demand for robust portfolio growth, which takes rent reductions off the table.

Property Spotlight

A shining example of a building that has experienced great recent new and renewal leasing activity is the Helene Houle Medical Center in Vadnais Heights, MN. The 56,700 square foot medical facility recently welcomed the 22,000 square foot Allina Health Surgery Center, and extended the lease of The Urgency Room’s successful site. Both entities are positioned to offer accessible, top-tier healthcare to the north central metro community for years to come.

Capital Markets and the Impact on Healthcare Development and Acquisition

The Healthcare real estate space is a dynamic landscape shaped by various economic factors and advancements in the healthcare industry. A key aspect that significantly influences acquisition strategy industry wide is the state of capital markets. The current instability in the capital markets has made underwriting assets and acquiring medical buildings more challenging than in recent years. In this article, we delve into the insights shared by Mark Davis, on how capital market changes have influenced his company strategy over the past year, future developments in the sector, Davis’ role in driving healthcare innovation, and the potential risks and rewards associated with healthcare development and acquisitions. Let’s explore how these factors interplay in shaping the future of healthcare development.

How Capital Market Dynamics Shape Our Strategies

Over the past year, we’ve observed an economic landscape characterized by change— the looming specter of recession, persistent inflation, and the continued rise of interest rates. These dynamics have sent ripples through the debt markets, requiring more creativity in our acquisition strategy. Gone are the days where cap rate compression would always make an investment a success. Uncertainty within the debt markets has influenced asset pricing, property appraisals, and consequently re-financing. Furthermore, the significant bid-sell gap that persists has exacerbated the shortage of available medical buildings on the market. Owners are holding onto these properties in the hope of more favorable market conditions. Due to these factors, we foresee a reduction in acquisitions this year. However, amidst these challenges, the fundamentals of the healthcare sector remain strong, and we have continued to see a steady demand for space from health systems and physician groups. In the aftermath of the COVID-19 pandemic, providers have realized the need to diversify and expand the services offered. With this realization, we have observed both healthcare systems and specialty groups seeking expansion opportunities in existing buildings as well as ground-up developments, with a strategy focused on consolidating providers together to create a more holistic approach to patient care. One example of this is the recent 610 Medical development in Brooklyn Park. This development has united two significant healthcare entities: Allina Health and Surgical Care Affiliates (SCA). Through their partnership, a new patient-centric delivery model has emerged. This model empowers Allina Health and SCA to seamlessly cater to the entirety of outpatient surgical care demands, while simultaneously offering patients a convenient and more cost-effective solution.

610 Medical

Anticipating Tomorrow: A Positive Outlook

Looking forward, we foresee interest rates stabilizing and the bid-sell gap coming to a healthy equilibrium over the next 24 months. This is expected to increase the supply of medical buildings available in the market. We’re also collaborating with trusted lenders, using debt swaps and caps to hedge against the downside risk of interest rate changes, positioning our portfolio for long-term success. As a full-service Healthcare Real Estate company, our expertise in healthcare leasing, acquisition, development, property management, architecture, and strategic planning strengthens our position to adapt to changing market conditions, allowing us to thrive even in a relatively down market. However, the overall landscape continues to change and at a rapid pace, making it all the more important for our team to adapt and seek out innovation in our industry that will bring increased value to our clients.

Pioneering Healthcare Excellence: A Journey of Innovation

Innovation is not just a buzzword; it’s the heartbeat of healthcare’s future. Capital investments play a vital role in driving advancements and innovation in healthcare. This leads to improved patient care, healthcare delivery, and an improved healthcare ecosystem. At Davis, we take pride in developing and acquiring Class A Medical Buildings that prioritize delivering top-notch healthcare services to the community, and innovation is at the forefront. Telehealth, remote monitoring, and data sharing are some of the newest paradigms the industry is turning to. Telehealth’s potential to broaden access to care is an exciting prospect, and we envision its seamless integration with physical healthcare spaces. The synergy between these innovations will redefine healthcare delivery and continue to shape the patient journey. As we forge ahead into the future, another prominent focal point regarding innovation will be around artificial intelligence (AI). At Davis, we closely monitor the implementation of AI and its uses across the real estate industry. We believe that effective integration of AI will enhance operational efficiency and contribute to future successes, especially as it relates to tracking and measuring ESG efforts and the effectiveness of smart building technology. Sustainability stands as the cornerstone of a successful future within the built environment. At Davis, we believe that real estate holds the potential to steer the transition towards a low-carbon economy. This journey involves utilizing materials with lower embodied energy and leveraging every building-related choice to enhance efficiency and minimize emissions wherever feasible. Continuing our unwavering stance at the forefront of sustainability, we implement environmentally conscious elements such as green walls and prefabricated interior solutions. Yet, our dedication extends beyond surface aesthetics. Through the use of features like fireplaces and touch screen directories, we curate a welcoming experience tailored to meet the needs of our clients and their patients. Our commitment to sustainability, patient-centered excellence, and staying at the forefront of emerging trends positions us favorably to overcome challenges and seize opportunities in the evolving healthcare real estate landscape.

Xchange Medical: Creating Spaces That Inspire, Heal, and Elevate the Human Experience

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.

A Symphony of Services

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.

From Neglect to Grandeur

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.

Architectural Partner

Where Collaboration Shapes Exceptional Medical Design

In the world of architecture, the term “synergy” holds profound significance. It encapsulates the notion that when individuals collaborate harmoniously, the resulting whole becomes greater than the sum of its parts. It’s this very philosophy that was the genesis for Synergy Architecture Studio. The purposeful choice of the term “studio” speaks volumes, evoking an image of a close-knit group of creative minds working seamlessly together. Unlike larger firms that often prioritize the bottom line, Synergy works with an ethos centered around the client’s vision and the hallmark of superior medical design.

The Architects Behind Synergy

Drawing from a collective experience of over 80 years, the studio consists of five members, bringing a diverse skillset to the table. Leading the charge is Patrick Giordana AIA/LEED AP, Synergy’s Principal. With an impressive 35-year tenure, he has earned immense respect across the Twin Cities’ medical community for his expertise in healthcare design. Complementing him is Matt O’Keefe AIA, a seasoned architect with 20+ years of experience, ensuring consistency and unwavering commitment to each project. The talents of Eric Mayer, Dylan Breyer, and Mikale Nafe infuse the team with unique perspectives that fortify and enrich the team’s approach.

A Powerful Partnership with Davis

The Davis journey has been enriched by a deep-rooted partnership with Synergy, spanning over 25 years. In 2019, Synergy and Davis joined forces, channeling a collective energy into delivering exceptional Class A medical developments and specialized medical tenant projects. This partnership began with a shared commitment to amplifying customer service through responsiveness and a dedication to delivering impactful and patient-centric healthcare environments. Together, we are able to provide elevated support to our valued clients and ensure that their visions are translated into reality with precision and excellence.

A Glimpse Into Our Shared Portfolio

Our collaboration extends to numerous primary care, specialty care, and health system tenant designs, creating a strong portfolio of healthcare facilities ranging in size from 10,000 to 148,000 square feet. Together, we create spaces that align seamlessly with the vision of our clients as demonstrated in legacy projects like Minnetonka Medical Center, M Health Fairview Clinics and Specialty Center in Maplewood, and CityPlace I & II in Woodbury and fresh designs like Xchange Medical in St. Louis Park, 610 Medical in Brooklyn Park, Wayzata Specialty Center, and Lakeville Specialty Center (opening in Q4 2023). We believe that through synergy, exceptional design emerges, and we look forward to shaping the future of healthcare alongside you.