BETTENDORF, IA—EnTrust Realty Advisors, LLC just completed the sale of the Lincoln Healthcare Building, a 39,899-square-foot medical office building in Bettendorf, IA, part of the Quad Cities' metropolitan area. The seller, represented by EnTrust, and the buyer, represented by Mel Foster Commercial, were undisclosed, but neither were national or institutional investors, says James I. Clark, EnTrust's managing principal.
The property was on the market for about six months and “did attract some interest on a national scale,” Clark adds, including inquiries from Chicago investors and from potential buyers in the Southwest. However, since the Lincoln building was built in 1996 and is off-campus “it appealed more to a local player rather than outside investors.”
The private partnership that sold the Lincoln property was involved in its development but decided to sell because some members needed to do estate planning, he says. The local buyers were looking for a safe investment and Lincoln fit their needs. Genesis Health System anchors the property, occupying 92% of the space. The locally-owned system has four hospital campuses in the area, and serves a 10-county area with a total of 600 physicians and 5,000 staff members. Genesis has been a tenant since the building opened.
Clark believes all healthcare real estate in the Quad Cities has tremendous appeal, especially the larger, and more modern, on-campus buildings. For example, in 2008, The Alter Group sold the 59, 615-square-foot Terrace Park Professional Center, also in Bettendorf, to a group of Dallas-based investors who had attracted money from overseas. Terrace Park was only four years old at the time of sale and attached to the 150-bed Trinity Park Hospital. EnTrust is an affiliate of The Alter Group.
“The Quad Cities draws its healthcare population from a very large geographic area; many people drive more than an hour to get there.” About one million people live within that radius, Clark says, making it "an attractive locale for healthcare services.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
