Cushman & Wakefield’s Healthcare Capital Markets team is pleased to present the MercyOne Clinton North Health Plaza for sale in Clinton, Iowa. Constructed in phases from 1964 to 2006 on a 7.0-acre lot, the property is a 115,142 square-foot, single-tenant medical office building that is an integral part of the Clinton healthcare landscape.
Currently, the property is fully leased to Mercy Medical Center - Clinton Inc. “Tenant”, a subsidiary of the Trinity Health system (Moody’s: Aa3, Stable | Fitch: AA-, Stable), which operates in 22 states. The existing lease is triple net (NNN) with 3.00% annual rental escalations and extends until June 30, 2029. The tenant is responsible for all operating expenses and Tenant’s share of Landlord’s Capital Obligations, as such term defined in Tenant’s lease, which shall be equal to the cost of any such obligation amortized at a market interest rate over its useful life, as determined by generally accepted accounting principles. The lease includes provisions for early termination effective November 30, 2027, provided the tenant pays a termination fee of $943,161 (calculation described in the lease abstract) and provides a 12-month notice to terminate.
MercyOne Clinton North Health Plaza boasts a strategic location approximately 40 miles north of Davenport, Iowa, effectively serving the healthcare needs of the local population and leveraging regional infrastructure to ensure optimal accessibility and delivery of healthcare services. The site was historically occupied by Medical Associates, a multi-specialty group, until its acquisition by Mercy/Trinity/MMCC in 2019, which was marked by the initiation of a five-year lease—a demonstration of strategic investment and commitment to the community.
Clinton is renowned for its strong community spirit and a focus on healthcare excellence. The property’s location offers more than a medical hub; it is also conveniently situated in the heart of a well-connected urban area. The city’s dedication to healthcare is further underscored by the continuous improvements and expansions of its facilities.