Stan Johnson Company Brokers Sale of $4.1 Million Fresenius Kidney Care in the Midwest for Record Cap Rate

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.

 

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About Stan Johnson Company:

Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses on investment sales transactions involving retail, office, industrial, healthcare, and specialty properties. The firm and its affiliates provide acquisition, disposition, sale leaseback, capital markets, and advisory services for institutions, developers, investment funds, corporate occupiers, and private investors across the United States. With a historic focus in the single-tenant net lease sector, Stan Johnson Company is now in its fourth decade of operation and has expanded its service platform in order to better serve its valued clients. The firm has completed more than $40 billion in transactions nationwide and continues to be regarded as the Net Lease Authority® as it focuses on continued growth and expansion into other industry sectors and services.