Portland, ME After launching a medical real estate investment fund last December with the acquisition of eight medical office buildings (MOBs), Minneapolis-based Davis has added a signature Portland property to its portfolio.
Davis Medical Investors LLC has acquired the 10-story, 107,228 s/f 84 Marginal Way building on 1.37 acres in the city’s Bayside District. The transaction closed Aug. 18, 2021.
The Class A, 100% leased building is anchored by InterMed, Maine’s largest private medical practice.
The property is an ideal fit for the Davis fund, according to Mark Davis, founder and managing partner of the national healthcare real estate development, property management, brokerage and investment firm.
“The 84 Marginal Way purchase fits all of our acquisition criteria, including a high occupancy level, financially strong credit tenancy, and the high quality of the property and the geographic market,” Davis said. “This is a growing, affluent area, with 117,500 people within five miles of the building. In addition, it’s near Maine Medical Center and Northern Light Mercy Hospital, and about four miles from Portland International Jetport. It’s also easily accessible from I-295.” When completed in 2008, the building was the city’s largest office building construction project in two decades.
84 Marginal Way is InterMed’s flagship location, and it delivers a wide variety of healthcare services there. This includes internal medicine, family practice, physical therapy, pediatric medicine, obstetrics and gynecology, emergency medicine, dermatology, audiology, cardiology, and sports medicine. Conveniently, the six floors of medical office space sit atop a four-level parking garage with 524 spaces.
Davis notes, “We’d also like to thank Joe Massa, senior managing director at Institutional Property Advisors (IPA), who represented the seller. Joe was instrumental in bringing us the deal and in getting the transaction closed.”
Davis adds, “Although we are very pleased with this acquisition, there is more to come.” The overall goal for the Davis Medical Investors LLC fund is to acquire $150 million or more each year, he says.
As noted above, the fund launched last December with the acquisition of eight medical properties. That $112 million acquisition totaled 536,362 s/f with properties located in Connecticut, Minnesota, Ohio and Tennessee. Capital One is providing financing for the fund.