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BETTENDORF, IA-Dallas-based RM Crowe has purchased the Terrace Park Professional Center, a 59,615-sf medical office that’s attached to the new 150-bed Trinity at Terrace Park Hospital. Alter+Care, based in Chicago, developed the building at 4480 Utica Ridge Rd. four years ago. Sources say RM paid more than $10 million for the three-story property. This is the first purchase in Iowa for the Southwest firm, and the first for its new $50 million medical office fund.

The building is 80% leased, according to a statement by EnTrust Realty Advisors LLC, which represented the seller. Jim Roberts with First Texas Realty Group Inc. represented the buyer in the transaction.

H. Dodd Crutcher, chief investment officer with RM, says the property has multiple tenants. “The hospital occupies about 45% of the building,” he tells GlobeSt.com. “This building fit a lot of our criteria. It’s relatively new on the campus, anchored by a hospital and our demographic research showed the need and growth of Bettendorf and the hospital itself.”

He says the new fund is focused nationwide. “Another of our criteria for the fund is that we be geographically diverse. We’ve been looking at the Midwest for awhile, we also have a medical laboratory in Indianapolis,” Crutcher says.

His company anticipates using the fund to buy about $150 million worth of new product in the next six-to-nine months. “We found the whole health care industry isn’t subject to the economic volatility of other industries, especially considering the aging population and the need for additional health care,” Crutcher says. “Medical offices, in comparison with other real estate investments, appear safer, you’ve got triple-net, long-term leases, and solid tenant retention; doctors tend not to move as frequently as retailers or other office users.” The company is also looking to invest in operating companies within the healthcare arena, such as ambulatory surgery centers and small surgical hospitals, in partnerships with physicians. “We really think this is a growth industry,” Crutcher says.

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