The University of Iowa requested approval from the Iowa Board of Regents on Wednesday for an acquisition to grow UI Health Care’s system and a property sale.
The regents approved the UI’s request to lease a 24,450-square-foot medical office building with Urbandale Medical LLC located at 2901 86th St. in Urbandale, Iowa.
The building will be leased for $14.50 per square foot and will house other UI Health Care clinics in the area, increasing accessibility for patients seeking care.
David Kieft, senior director of university business and real estate, said the building is currently vacant.
The building currently contains 32 exam rooms, five procedure rooms, an X-ray machine, and office space. Renovations will be completed by adding new equipment to the X-ray room. Additional space for a telecommunications room and other equipment is included. The $750,000 to lease the building will be funded by the owner through the tenant improvement allowance.
Additionally, the 15-year lease agreement offers two five-year renewal options with the initial base rent, an additional $10.50 per square foot will be added for annual building expenses and real estate taxes.
Building expenses will vary depending on the annual amount of cost incurred from expenses.
Kalona Land Sale
The UI also requested the sale of a 39,341-square-foot building located at 503 3rd St. in Kalona, Iowa, to Washington Clinics and Hospitals of Washington, Iowa.
The land currently houses a 3,750-square-foot medical office building acquired by UI Health Care after the Mercy Iowa City acquisition in January.
The proposed sale will cost $425,000. Both parties have agreed to maintain the existing building with all its amenities including furnishing, medical equipment, and supplies.
UI Health Care currently operates a clinic in Washington County, roughly 10 miles from this property. The clinic serves Kalona residents and those in the surrounding areas.
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All staff at the Kalona clinic will be transferred to other UI Health Care clinics so they can continue to serve communities.
According to the report to the regents, the sale will allow for Kalona residents and surrounding communities to be served by both UI Health Care and Washington Hospitals and Clinics.
The regents will take these requests into consideration and vote at a later date.