Healthcare Realty Sells Iowa MOB

Healthcare Realty has sold Iowa Heart Center, an 83,000-square-foot medical office building in West Des Moines, Iowa, according to Yardi Matrix information. IRA Capital acquired the asset for $36.7 million—about $442.2 per square foot.

The buyer also took out a bridge loan from BMO Bank, the same data provider shows. The note is set to mature in 2028.

Completed in 2004 at 5880 University Ave., Iowa Heart Center sits on 8 acres and is close to interstates 35, 80 and 235. Des Moines International Airport is 15 miles away, while the city’s downtown is 10 miles east.

Tenants at the building include Iowa Heart Center, Vein Center and MercyOne. The two-story property has 42,048-square-foot floorplates and more than 380 car parking spaces.

The news comes on the heels of IRA Capital’s acquisition of a 1.5 million-square-foot medical outpatient facility portfolio. The company, in partnership with a sovereign wealth fund and an international pension investor, purchased the 24-property collection spanning 11 states also from Healthcare Realty.

This reflects what has been noted as one of the significant medical office real estate trends shaping up the industry, as private equity and foreign capital—largely through professionally managed domestic funds—are actively pursuing opportunities across the sector.

Healthcare Realty’s large portfolio deals

As of September, Healthcare Realty’s portfolio comprised 579 properties across 28 states, according to its website. These assets total about 33.6 million square feet, most of them located in Dallas, Seattle and Charlotte, N.C.

In November, Healthcare Realty sold Bon Secours Medical Campus Collection, a six-property medical portfolio in Richmond, Va. The assets spanned 405,945 square feet and traded for a combined $171 million.

About a year ago, the firm also sold the West Valley Medical Portfolio. University of California acquired the collection totaling 162,554 square feet located in West Hills, Calif. The three facilities are 21 miles from UCLA’s main campus.