Plans to relocate Merle Hay Family Medicine and Urgent Care are going forward after a delay of more than two years, said Paul Weeks, a vice president and broker associate with CB Richard Ellis/Hubbell Commercial.

Weeks represented Iowa Health Physicians and Clinics in finding a suitable property for the new facility, a 13,000-square-foot medical office building (MOB) to be constructed at 4020 Merle Hay Road, Des Moines.

The terms of the agreement were convoluted, Weeks said, adding that the search for a workable site began in June 2006.

Getting “three relatively large entities to agree at the same time,” presented the largest obstacle to closing the deal, said Jake Christensen, co-owner of Nelson Development & Construction, the owner, builder and developer of the new facility.

After locating a suitable site on Merle Hay Road on which to construct a build-to-suit MOB for Iowa Health, the first hurdle was negotiating the buyout of a previously existing land lease between New York-based Oppenheimer Family Trust and New Plan Excel Realty Trust – the former owner of the 1.5-acre parcel – Christensen said, adding that the property was sold during the process, further complicating the deal.

The developer then had to negotiate a land lease with the new owner, Centro NP Holding 10 SPE LLC, get permission from Centro to tear down the existing building on the site and negotiate the lease of the new building to Iowa Health.

Christensen said everything was finalized in the last six months.

“They took that bull by the horns,” Weeks said, complimenting Nelson’s successful negotiation of the land lease. At first, Centro was concerned that the clinic wouldn’t attract enough traffic to the shopping center it owns directly west of the site, Weeks said, adding that the developer was “very creative” in its approach, eventually persuading the Australia-based real estate investment trust to agree to a 40-year lease with renewal options.

“The land lease just throws an extra cog in the process,” said Tom Kieffer, director of facility management for Iowa Health Physicians and Clinics, adding the majority of the time was spent trying to find a suitable location.

“Other developers did not want to pursue it,” Weeks said.

The former Texas Cattle Co. restaurant building was razed last week and site preparation is under way, Christensen said, adding that vertical construction should begin within the next few weeks.

Iowa Health – Des Moines’ Outpatient Therapy will also relocate to the new building when it opens in 2009.