Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the off-market sale of a single-tenant healthcare property in West Des Moines, Iowa. The 9,536-square-foot dialysis facility is fully leased to Fresenius Kidney Care and is located at 9080 University Avenue. Blaise Bennett and BJ Feller of Stan Johnson Company represented the seller, Hurd Real Estate, a local developer. Midwest Equity Investors, based in Cedar Rapids, Iowa, purchased the asset for $4.1 million.
“The outstanding Class A medical development, coupled with the long-term net lease in a growing West Des Moines market, attracted many investors to the property,” said Bennett, Associate Director in Stan Johnson Company’s Chicago office. “We received multiple offers which achieved a sub-5.50 percent cap rate, setting a new record for a Fresenius property located in the Midwest.”
The property was built in 2019, and it sits on two acres just west of West Des Moines’ multi-hospital medical complex that includes MercyOne West Des Moines Medical Center, The Iowa Clinic West Des Moines, and The Vein Center at Iowa Heart Center, among others. Fresenius is operating under a long-term net lease with annual rent escalations.
“The strong surrounding demographic base and proximity to West Des Moines’ medical corridor were recognized by a number of investors and ultimately helped drive pricing on this asset,” added BJ Feller, Managing Director in Stan Johnson Company’s Chicago office.
