Davis Healthcare Real Estate announced on June 26 that it acquired a medical outpatient building (MOB) portfolio with one location in Coralville, Iowa and one in Maplewood, Minnesota. The MOBs were purchased for a total of $34 million.
Coral West Medical Building is a three-story, 60,351-square-foot MOB in close proximity to the University of Iowa campus. Davis acquired the property for $24.15 million, or approximately $400 per square foot. At closing, the building was 97% leased with more than 65% of the space leased to the University of Iowa. Among the services provided by University of Iowa Healthcare are primary care and internal medicine, obstetrics and gynecology, neurology, imaging, rehab and dermatology, among others.
Birch Run Medical Building is fully leased, with MHealth occupying 86% of the building. The purchase price was $9.85 million, or approximately $352 per square foot. Prior to the acquisition, MHealth executed a long-term lease to bring a neurology group to the building. Other specialty areas within MHealth’s practice at the building include a spine center and a dental implant center.
Davis Healthcare Real Estate is a real estate firm for the healthcare industry. It is based in Minneapolis, Minnesota.
Davis Healthcare completed the transaction on behalf of its open-ended Davis Medical Investment Fund. With this acquisition, the fund now encompasses 17 single and multi-tenant, off-campus ambulatory care buildings totaling more than 750,000 square feet of space. The assets under management total approximately $275 million.
Eric Gunderson of Alerus Financial and Scott Sullivan of American National Bank provided financing for the acquisitions in Minnesota and Iowa, respectively.
According to data captured in the LevinPro HC database, this transaction marks the 95th MOB deal of 2025. Throughout all of 2024, 213 MOB transactions were announced. This is the second MOB acquisition reported in Iowa and fourth in Minnesota for 2025.
