CBRE Advises on Sale of WestHealth Medical Outpatient Campus in Twin Cities

CBRE has arranged the sale of the WestHealth Medical Outpatient Building in Plymouth, Minnesota, to Davis, a Minneapolis-based healthcare real estate firm.

Chris Bodnar, Brannan Knott, Zack Holderman, Cole Reethof, Trent Jemmett and Jesse Greshin of CBRE’s U.S. Healthcare Capital Markets team, along with and Minneapolis-based Ryan Watts, partnered with Steve Brown of Forte Real Estate Partners as the seller’s exclusive advisors.

WestHealth Outpatient Building comprises a three-building, trophy outpatient medical campus spanning 200,960 square feet. These interconnected medical outpatient buildings serve as the flagship outpatient campus for Allina Health’s 686-bed Abbott Northwestern Hospital, located approximately 14 miles southeast in Minneapolis. Originally purpose-built by Allina Health and acquired by the current ownership in 2013 through a long-term ground lease, the building has undergone expansions to meet the increasing demand for outpatient services in a community-based setting.

WestHealth Outpatient Building is currently 96% leased with Allina Health occupying 73% of space. Notable features include a multi-specialty ambulatory surgery center with six operating rooms, three procedure rooms and a full-service emergency department with eight beds.

“The WestHealth campus serves as the healthcare hub for the west side of the Twin Cities,” said Bodnar, Head of U.S. Healthcare Capital Markets. “Its prime location at the intersection of Interstate 494 and Highway 55 makes it a desirable destination for providers. This will be a great long-term acquisition for Davis.”

Davis provides healthcare real estate development, property management, investment and consulting services to health systems, hospitals, individual medical groups, specialty practices and other healthcare organizations.