Case Studies

HealthEast Clinic & Specialty Center

Hazelwood Medical Commons

2945 Hazelwood Street
Maplewood, Minnesota 55109

HealthEast Clinic & Specialty Center, Maplewood, Minnesota

Mark Davis of the Minneapolis-based healthcare real estate company, Davis, is a leader in the industry who values relationships built on hard work and trust. He works with Physicians Realty
Trust because John Thomas and his team share those values.

“I want to work with people that I enjoy, that I trust, and with whom I have similar beliefs,” Davis said. “The DOC Team fits all of those attributes. I respect them, and they’ve hired great people. They’re fair, straightforward, transparent, and they get deals done.”

Davis and DOC started their relationship in 2015, following Davis’ sale of eight Class-A medical buildings to DOC. It is a partnership that has grown over the last few years. Most recently, DOC acquired the HealthEast Clinic & Specialty Center in Maplewood, Minnesota for nearly $71 million in January 2018.

Located in the suburban Minneapolis-St. Paul market, Davis developed the HealthEast Clinic & Specialty Center in collaboration with the leadership of St. John’s Hospital, a member of the
Fairview Health System (Moody’s: ‘A2’). Opened in October 2017, HealthEast Clinic & Specialty Center is a brand new, state-of-the-art facility located adjacent to the HealthEast St. John’s
Hospital Campus.

Davis sold the medical center to Physicians Realty Trust because of DOC’s exceptional service. Davis wasn’t interested in a quick sale of the property, but rather in partnering with DOC to
foster a long-term strategy for growth with outstanding assets.

Now over 90% leased, the building includes a diverse array of services with a referral ecosystem designed to fit the needs of families in suburban Minneapolis-St. Paul. The first floor consists of a family clinic, urgent care, onsite lab, and pharmacy. The second floor focuses on specialties such as obstetrics and gynecology, pathology, and urology, while the third floor features a dedicated outpatient surgery center.

According to Davis, his team developed the new building adjacent to St. John’s Hospital to meet HealthEast’s strategic vision of consolidating their ambulatory services into one facility. However, the finished product went above and beyond.

Originally planned to be 80,000 square feet, Davis expanded the scope of the project twice during construction to accommodate St. John’s needs and the robust demand for Class-A healthcare real estate in this market. Davis delivered the completed 148,000 square foot facility within 30 days of its initial target date for completion despite these midstream changes.

On December 8, 2017, HealthEast Clinic & Specialty Center was recognized by HREI (Healthcare Real Estate Insights™) as the 2017 HREI Insights Awards™ Best New Medical Office Buildings and Other Outpatient Facilities (100,000 square feet or more) winner for the United States. This is the second time Davis has won this prestigious award. In 2015, Davis won the award for the Minnetonka Medical Center, fully leased to North Memorial Health, a facility now owned by Physicians Realty Trust. The HREI Insights Awards™ are the only national awards dedicated to
recognizing excellence in the areas of healthcare real estate development and executive leadership.

It’s easy to see why Davis received the award. From a development perspective, the group created a look and feel that exceeds expectations for a medical center.

“We installed a piano in the lobby. We’ve got a fireplace. We use local artists and have wonderful artwork,” Davis said. “When you put all those pieces together, what we’ve worked hard to do is really change that feel for the patient experience. When they walk in the door, they don’t feel like they’re going to the doctor.”

Under DOC ownership, Davis will continue to manage the property. The shared values between the two companies make Mark Davis bullish on future collaborations.

“I can’t say enough good things about John and the team and what they’ve built at Physicians Realty Trust,” he said. “We’re very appreciative and fortunate to be part of their team and to have been able to grow our business alongside DOC as it expands.”

Building Size
Property Type
Space Available

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In 2017, DOC acquired two multi-tenant properties affiliated with Northside, after the hospital system exercised their rights of first refusal during the sale of Duke Realty’s healthcare portfolio. DOC’s team of healthcare real estate experts closed on the acquisition of Northside Center Pointe and Northside Cherokee/Towne Lake in 2017 for nearly $193 million.
Medical Office Building
Avondale MOB
When Integrated Medical Services (IMS) decided to divest ownership of four medical facilities, the group opted to work with DOC.
"I want to work with people that I enjoy, that I trust, and with whom I have similar beliefs. The DOC Team fits all of those attributes. I respect them, and they’ve hired great people. They’re fair, straightforward, transparent, and they get deals done."
Mark Davis
Principal, Davis