A Minneapolis-based real estate firm has paid $72 million to acquire WestHealth, a large campus of medical buildings in Plymouth that’s occupied by Allina Health.
Minneapolis firm acquires Plymouth campus leased by Allina Health
Health care real estate firm Davis paid $72 million to acquire three buildings in a deal that closed in mid-October.
The Minnesota Star Tribune
October 21, 2024 at 3:29PM
The three-building facility is a prominent outpatient medical center in the west metro with services including ambulatory surgery and urgent care.
Davis, the acquiring firm, purchased the property this month from Chicago-based Harrison Street Real Estate Capital, which bought it from Allina back in 2013.
“It’s a big acquisition for our company,” said Mark Davis, the chief executive at Davis, a privately held firm with about 30 employees. He called WestHealth “a trophy property that we have always wanted to acquire.”
Allina Health, one of the largest health systems in the state, said it will continue operating under a long-term lease at WestHealth. The health system occupies about three-quarters of the overall space, which measures 201,000 square feet.
Allina has been part of a recent trend in which hospital and clinic operators are beginning to invest again in construction projects following big disruptions from COVID-19 and financial pressure from rising labor costs.
Allina also owns a building on the WestHealth campus that provides rehabilitation care but was not part of the real estate deal this month.
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