Case Studies

Class A alignment of vision and strategy

Minnetonka Medical Center

15450 Highway 7
Minnetonka, Minnesota 55345

The Davis Group

When Mark Davis and The Davis Group decided to sell eight Class A medical buildings, there were several buyers interested in the facilities. However, John Thomas and DOC quickly set themselves apart.

“John is engaging, smart and straightforward,” says Davis. “It didn’t take long to feel confident that he has the integrity to make him and Physicians Realty Trust a great partner. Everyone I have met or dealt with from DOC continues to build on that initial impression.”

Four factors influenced Davis’s decision to sell

What started as a typical building sales process, quickly evolved into the beginnings of a long-term partnership. Davis’s decision to sell to DOC was based on four main factors:

  • A similar vision for the future – Davis looked for a buyer that would take care of his current tenants the same way he would if The Davis Group continued as the majority owner of the buildings.
  • A long-term hold – Davis wanted a partner that had interest in holding the properties long term. A number of prospective buyers would only commit to a 3-5 year hold-and-sell strategy.
  • An opportunity for partnership – Davis was interested in staying on as a minority owner in the properties and wanted a partner that would allow The Davis Group to continue to manage and lease the buildings.
  • A strategic partnership – Davis looked for a partner he could build a relationship with that would benefit both organizations.

Partners in goals and objectives

“DOC quickly distinguished themselves as a partner that could fulfill all of our major sales and partnership objectives,” said Davis. “I wanted to remain as a long-term partner and was concerned about the treatment of our tenants. These two factors were two fundamental considerations that drove our transaction.”

Davis looks forward to continuing his partnership with DOC. “I’m comfortable that their goals and objectives are in line with mine and I want to be part of their strategy and vision for the future,” he said.

DETAILS
Building Size
63,500 sq ft
Property Type
single-tenant
Space Available
no

Medical Office Building
Northside Medical Midtown
Northside Hospital made a strategic decision to develop a new, state-of-the-art medical office tower in the heart of Atlanta’s booming Midtown neighborhood.
Medical Office Building
Hazelwood Medical Commons
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.
Medical Office Building
Northside Center Pointe
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.
"“I’m comfortable that their goals and objectives are in line with mine and I want to be part of their strategy and vision for the future,”"
Mark Davis
Principal