Medicaid manager will pay top dollar for West Des Moines digs

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Iowa Total Care, a company hired to help manage Iowa’s $4.8 billion private Medicaid system, has applied for permits valued at $4 million for tenant improvements at R&R Realty Group’s new Westfield office complex, a state-of-the art facility that is expected to charge the highest office rents in Greater Des Moines.

The firm is a subsidiary of St. Louis-based Centene Corp., a publicly traded managed care operation. Iowa Total Care will have a jobs fair Jan. 22 and Jan. 23 at Sheraton West Des Moines Hotel, where it will be looking to fill a range of positions, according to its website. The company will have other jobs fairs across the state through the end of January.

According to the building permit filed in West Des Moines under Centene’s name, the company plans to shape 80,000 square feet at Westfield to suit its office needs. That means the company would occupy one half of the Westfield office complex, where R&R recently moved headquarters last month.

Westfield is two 80,000-square-foot office buildings joined at the middle by a common area that features meeting and conference spaces, a coffee shop, a fitness center and a rooftop terrace. Additional amenities include available underground parking, state-of-the-art security and access to R&R’s private fiber network, according to a release. R&R Realty Group President Mark Rupprecht has described the Westfield campus on Jordan Creek Parkway as “part office and part showroom for customers looking for inspiration and ideas.”

R&R advertised the building at a base rent of $22.95 per square foot on a triple-net lease, meaning the tenant also would pay for taxes, operating costs and common area maintenance. Those extra expenses would push monthly rent to the $30 per square foot range.

A report in January 2018 from international real estate firm JLL found that Jordan Creek Parkway had the most expensive office rents in Greater Des Moines at a base of nearly $25 per square foot. The study placed the West Des Moines thoroughfare among the most exclusive in the country for office users.

With rents 37.5 percent higher than average office rents in Greater Des Moines, Jordan Creek Parkway ranked No. 42 on JLL’s 2017 listing of the most expensive streets in America.

Sand Hill Road in San Francisco topped the list at $119.38 per square foot; Park Avenue in New York City was second at $116.04.

“This area of the market has seen two office building completions in the last three years with another 160,000 square feet of office space under construction,” Eric Land, senior research analyst for JLL in Des Moines, said when the report was released. “Newer, modern spaces have been demanded in the market and convenient access makes them even better.”