Medical Office Absolute NNN
For Sale
Contact for pricing
1000 Alliance Drive, Hazleton, PA 18202
Single-tenant medical office property leased under an absolute net structure with tenant-responsible operating expenses.
Property Size13,090 SF
Lot Size5.58 Acres
Price / SF$418.93
Days on Market197
Property Features for 1000 Alliance Drive
General Information
Standard status
Active
Size
13,090 SF
Lot size
5.58 Acres
Property subtype
OFFICE
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Business Included
No
Building Details
Tenancy
Single
Listing Agency:
Matthews Real Estate Investments Services | New York
(818) 522-4497
Listed By:
Michael Moreno · License #CQ1066435,BK3554632(FL)
(818) 522-4497
Source:
Moodyscre
Added: Feb 4
Changed: Jul 28
Last Checked: Jul 28 at 9:47PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Matthews Real Estate Investments Services | New York
Investment Insights
Based on property information with market context.
This offering features a medical office facility operated for medical offices, including surgical, clinical, and diagnostic testing services, under an absolute net lease structure. The tenant is responsible for all operating expenses and for reimbursing capital expenditures on an amortized basis, with additional rent calculated using SOFR plus 250 basis points.
The lease includes a 15-year initial term with over 14 years remaining, providing long-term stability. The agreement is supported by a full corporate guarantee from Lehigh Valley Health Network, Inc., which is part of Jefferson Health.
The property also includes 2.5% annual rental escalations throughout the lease term. The offering is situated on a 5.58-acre land parcel with prime positioning at 1000 Alliance Drive and frontage along S.R. 3026 Airport Beltway.
The lease includes a 15-year initial term with over 14 years remaining, providing long-term stability. The agreement is supported by a full corporate guarantee from Lehigh Valley Health Network, Inc., which is part of Jefferson Health.
The property also includes 2.5% annual rental escalations throughout the lease term. The offering is situated on a 5.58-acre land parcel with prime positioning at 1000 Alliance Drive and frontage along S.R. 3026 Airport Beltway.
Key Highlights
- Single‑tenant medical office property leased under an absolute net structure, with tenant responsible for operating expenses.
- Lease backed by a full corporate guarantee from Lehigh Valley Health Network, Inc. (part of Jefferson Health, S&P: A).
- Fifteen (15) year initial lease term with over 14 years remaining for long‑term stability.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$230,931
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.21%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,618,620
$4.6M
Cap Rate 7%
$3,299,014
$3.3M
Cap Rate 9%
$2,565,900
$2.6M
Market Conditions
NOI Build-Up for 13,090 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$380.1K $29.04/SF
− Vacancy
−$72.2K −$5.52/SF
EGI
$307.9K $23.52/SF
− OpEx
−$77.0K −$5.88/SF
NOI
$230.9K $17.64/SF
Area
Luzerne County, PA
Vacancy
19.00%
Lease Rate
$29.04 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,618,620
Cap Rate 7%
$3,299,014
Cap Rate 9%
$2,565,900
Alternative Uses
Best Use
Office B
$3.30M
$2.89M – $3.85M
NOI $230,931 @ 7.0% cap · market cap 4.21%
Second Best
Healthcare Medical
$2.22M
$1.94M – $2.59M
NOI $155,226 @ 7.0% cap · market cap 2.83%
Theoretical Best
Office A
$4.15M
$3.63M – $4.84M
NOI $290,284 @ 7.0% cap · market cap 5.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
461
Businesses Nearby
Explore this area
Business Placement
Demographics for 18202, PA
13,894
Population
6,036
Households
2.3
Avg Household Size
42
Median Age
21%
College-Educated
88%
High-School Grad
35.0 sq mi
ZIP Area
397
Density / Sq Mi
$55,517
Median Household Income
$35,330
Median Earnings
$1,029
Median Rent
$182,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical center - Single-tenant medical office property leased under an absolute net structure with tenant-responsible operating expenses.
Where is this medical center located?
The property is located at 1000 Alliance Drive Hazleton, PA.
What is the asking price?
The asking price for this property is $5,483,739.
What are key features of this property?
This property features: Single‑tenant medical office property leased under an absolute net structure, with tenant responsible for operating expenses.; Lease backed by a full corporate guarantee from Lehigh Valley Health Network, Inc. (part of Jefferson Health, S&P: A).; Fifteen (15) year initial lease term with over 14 years remaining for long‑term stability.
