Building Details

Year Built 2020

Buildings 1

Tenancy Single

Listing Agency: ASU Commercial m***@asuassociates.com Show Phone

Listed By: Martin Starr · License #CA 01179469

Source: Crexi

Added: Jul 28 Changed: Aug 30 Last Checked: Aug 30 at 6:00PM

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Investment Insights

Based on property information with market context.

This 12,500-square-foot medical center is configured for a single occupant and was completed in 2020. The property is zoned Executive Administrative and is subject to a net lease with Kinter Dialysis, LLC, a DaVita Inc. subsidiary.

The original lease began May 1, 2020, with a 15-year initial term. DaVita Inc. provides a full guaranty of the lease, adding a defined credit-support feature to the tenancy.

Key Highlights

• 12,500‑square‑foot medical center completed in 2020
• Single‑tenant net lease with Kinter Dialysis, LLC
• Kinter Dialysis, LLC is a subsidiary of DaVita Inc.

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

$400,349

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

4.39%

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%

$8,006,980 $8.0M

Cap Rate 7%

$5,719,271 $5.7M

Cap Rate 9%

$4,448,322 $4.4M

Market Conditions

NOI Build-Up for 12,500 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

$687.0K $54.96/SF

− Vacancy

−$153.2K −$12.26/SF

EGI

$533.8K $42.70/SF

− OpEx

−$133.4K −$10.68/SF

NOI

$400.3K $32.03/SF

Area

San Mateo County, CA

Vacancy

22.30%

Lease Rate

$54.96 /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%

$8,006,980

Cap Rate 7%

$5,719,271

Cap Rate 9%

$4,448,322

Alternative Uses

Best Use

Office B

$5.72M

$5.00M – $6.67M (±1% cap)

NOI $400,349 @ 7.0% cap · market cap 4.39%

Second Best

Healthcare Medical

$5.70M

$4.99M – $6.65M (±1% cap)

NOI $398,970 @ 7.0% cap · market cap 4.37%

Theoretical Best

Warehouse

$9.93M

$8.69M – $11.58M (±1% cap)

NOI $695,023 @ 7.0% cap · market cap 7.62%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Medical centers

Suggested Use

Top Pick Law Firm Big Box & Wholesale Store Real Estate Agency Building Supply Gym & Fitness Center Auto Parts Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,278

Businesses Nearby

Explore this area Business Placement

Demographics for 94014, CA

48,677

Population

15,643

Households

3.1

Avg Household Size

39

Median Age

33%

College-Educated

84%

High-School Grad

6.4 sq mi

ZIP Area

7,606

Density / Sq Mi

$115,513

Median Household Income

$49,144

Median Earnings

$2,089

Median Rent

$979,500

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this medical centers located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Medical center - Net-leased healthcare facility with executive administrative zoning and a 2020 construction date.

Where is this medical center located?

The property is located at 1055 El Camino Real Colma, CA.

What is the asking price?

The asking price for this property is $9,120,200.

What are key features of this property?

This property features: 12,500‑square‑foot medical center completed in 2020; Single‑tenant net lease with Kinter Dialysis, LLC; Kinter Dialysis, LLC is a subsidiary of DaVita Inc.