The U.S. Department of Veterans Affairs Outpatient Clinic in Davenport, Iowa is a first-generation healthcare facility that was comprehensively redeveloped for the U.S. Department of Veterans Affairs (VA) with completion in 2019, and is leased for a new 20-year term with the VA. The lease is guaranteed by the full faith and credit of the United States of America, featuring a Moody’s Aaa credit rating and unrivaled income security.
The subject property is an expansion and relocation of existing VA services within the Quad Cities market area, providing a 200% increase to facility size versus the prior clinic location. This new VA facility serves approximately 10,000 veterans, offering a wide range of services including Primary Care, Nutrition, Food and Dietary Care, Mental Health Care and Behavioral Health, Laboratory and Pathology, Radiology, Social Work, and Telehealth.

Tenant improvements paid by VA at occupancy exceeded $4.9 million ($174 per foot), demonstrating the tenant’s significant investment in the new clinic. Replacement cost of the subject property is approximately 200% of the current market value of the asset, providing the rare opportunity to achieve a low basis with long-term upside in future lease rates.

VA occupies 28,145 rentable square feet within the 33,873 total square feet of the subject property, equating to 84% occupancy, with 5,728 square feet of vacant space providing future upside potential in the event of VA expansion. The property is situated within the Valley Fair Shopping Center, serving the cities of Davenport and Bettendorf in southeastern Iowa, and Rock Island, Moline, and East Moline in northwestern Illinois. The Davenport VA Outpatient Clinic benefits from a central location within four miles of downtown Davenport and is positioned in close proximity to Interstate 280, Interstate 80, and Interstate 74. Davenport’s recent economic development includes the River Renaissance, a $113.5 million public and private sector investment to revitalize the nine-mile downtown riverfront area.