MN Snapshot: Woodbury is quickly becoming a health care hub for Minnesota.

Byline: Dan Emerson

Editor's note: Minnesota Snapshot reports interesting sales and development projects happening throughout Minnesota.

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When Shriners Healthcare for Children one of the oldest health care providers in Minneapolis chose a new, primary location, it looked outside of the city, to the east metro suburb of Woodbury. As part of a shift from providing inpatient to outpatient care, Shriners broke ground in June for a new clinic at the Davis Group's CityPlace II development, south of Interstate 94 and east of Radio Drive.

In February, Shriners, which has been providing care locally since 1923, put its East River Parkway campus up for sale. The University of Minnesota has a deal to purchase the 10.3-acre site, the Minneapolis-St. Paul office of Colliers International confirmed Wednesday.

Shriners joined a number of other Minnesota providers in choosing Woodbury, which has become the state's fastest-growing health care destination in recent years. There are now about 226 health care businesses in Woodbury, about 45 of those added in the past five years; health care businesses are about 20 percent of the businesses there, accounting for more than $1 million in total payroll, according to the city.

Regarding Shriners' choice to Woodbury, Shriners administrator Charles Lobeck cited good highway access as one major factor, since the Shriners service area includes six surrounding states. An abundance of amenities for patient families who are staying in the Twin Cities hotels, restaurants, retail and other activities was another factor.

Shriners also wants to be close to a mix of other providers, which Woodbury has, he said. "We're energized by the possibilities and synergy that might come from those new relationships."

When its building is completed next year, Shriners will become the newest tenant at CityPlace II, leasing 20,000 square feet of a 44,000-square-foot building. Davis has also begun construction of a 14,900-square-foot building totally leased by the Midwest ENT Group.

The two buildings are on either side of the 50,000-square-foot, multitenant medical building Davis developed in the 100-acre CityPlace mixed-use development, purchasing the site from master developer Elion III CityPlace Office LLC, an entity of Aventura, Florida-based Elion Partners.

The CityPlace development is the kind of high-visibility, easily accessible site that ambulatory care providers seek out, to serve their existing patients and attract new...