Location of new medical offices attracts tenants

Location was a major factor in the signing of three tenants for the new Coral West Health Center.

Corridor Radiology, Mercy Services and Obstetrics and Gynecologic Associates of Iowa City and Coralville have signed leases for the $5 million, 69,000-square-foot, three-story medical office building under construction at 2769 Heartland Dr.

Julie Lester, practice administrator for Radiologic Medical Services of Coralville, which will change its name to Corridor Radiology, said the owners of the diagnostic imaging facility liked the building's location.

“We spent about a year

looking at various locations,” Lester said. “For us, it's all about convenience and ease of access for patients. When we looked at Coral West Health Center, with its proximity to I-80 and I-380, it was really kind of a no-brainer.

“We will be leasing about 10,000 square feet on the lower level off the atrium, including our diagnostic facility and our business office.”

Lester said Corridor Radiology will be a full service, free-standing diagnostic imaging center serving referring physicians and their patients throughout the Corridor.

“We will be competing with the traditional inpatient hospital facilities,” Lester said. “This will be more of a clinic, medical office setting.

“When you're in a hospital setting, you typically deal with deductibles when it comes to your health insurance. Since this will be more of a physician office setting, it's a co-pay situation, reducing the cost to patients.”

Lester said Corridor Radiology has eight physicians and 21 staff members. She said the larger facilities will increase staff by about 25 percent.

Kris Kay, leasing director for TGS Management Inc. of Coralville, said Mercy Services Iowa City, owned by Mercy Iowa City, will have a 5,000-square-foot urgent care clinic in Coral West Health Center.

“With the clinic nearby, we will be staying open longer hours,” Lester said. “We want to be available for patients who will need an x-ray or other form of diagnostic imaging. We think it will be much more convenient to have everything in the same building.”

Kay said Obstetrics and Gynecologic Associates will be moving its main office to 12,000 square feet of office space in the new building. The practice is presently located at 1100 Sixth St. in Iowa City.

“We're about 90 percent leased, not counting space we would like to lease to a coffee shop,” Kay said. “We expect that the building will be ready for our tenants to occupy in late December.”

Coral Development, the developer of Coral West Health Center, acquired the Heartland Drive property from Heartland Express when the truckload carrier moved its headquarters to North Liberty two years ago. Coral West Health Center, which will offer underground parking for its tenants, will be the cornerstone of the property's redevelopment.

Hunter Companies of Cedar Rapids is the general contractor and Aspect Architecture & Design of Cedar Rapids is the project designer.

Dave DeWitte of The Gazette contributed to this story.