Advanced Surgery Center of Central Iowa- West Des Moines, IA

Long-term NNN Lease With Built-In Hedge Against Inflation – The tenant operates under a NNN lease with minimal landlord responsibilities, providing investors with a stable, passive income stream. Current term remaining is just under 10 years, with two 5-year renewal options and CPI-based rent increases every other year.
Defensive Healthcare Asset Class – Healthcare real estate remains highly attractive due to its resilience during economic downturns and consistent demand for essential services. Ambulatory surgery centers (ASCs) are a particularly strong subsector, driven by ongoing trends toward outpatient care, cost efficiency, and an aging population.
Limited Competition Due to Certificate of Need (CON) – Iowa is a Certificate of Need (CON) state for surgery centers. This regulatory structure restricts new competition by requiring state approval to demonstrate market need. As a result, tenants with existing CONs benefit from reduced competitive risk and enhanced tenant stickiness, given the cost and complexity of obtaining such approval.
Surgical Services With Tenant Investment – The Advanced Surgery Center of Central Iowa, located in West Des Moines, is a specialized outpatient surgical facility delivering high-quality, patient-centered care in a modern, non-hospital setting. Since its full renovation in 2018, the center has offered services including ENT, total joint replacement, sports medicine, and trauma care. The tenant’s significant capital investment and continued commitment to this location underscore its strategic value within the Des Moines metro healthcare landscape.
Densely Populated, Aﬄuent Area –The surrounding 5-mile radius includes over 186,000 residents with an average household income exceeding $102,500, supporting strong consumer spending, sustained demand for healthcare services, and long-term tenant stability driven by strong demographics.
Strong Medical Corridor Location – The property is less than 3 miles from MercyOne Iowa Heart Center and UnityPoint Health – Methodist West Hospital, and under 15 minutes from Broadlawns Medical Center. Its proximity to major healthcare hubs ensures sustained demand for outpatient surgical services.
Highly Accessible Site – Positioned directly oﬀ Highway 235, the property beneﬁts from excellent regional connectivity. It sits adjacent to Valley West Mall and within 5 miles of Jordan Creek Town Center, a major mixed-use destination. Des Moines University is also a short drive away, providing a steady ﬂow of healthcare professionals and patients.
Rapidly Growing Economy – West Des Moines building permits hit a record $1.7B in 2024, driven by Microsoft’s data center expansion (now $5B+). The growth generated hundreds of permanent jobs, thousands of construction jobs, higher valuations, and major infrastructure investment. City-approved development agreements contributed an additional $585M, reinforcing West Des Moines as a premier investment market.

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Adam Marek