Two-Story Multi-Tenant Medical
For Sale
$5,850,000
1150 E Orangethorpe Ave, Placentia, CA 92870
Renovated two-story multi-tenant office building with high-efficiency HVAC, upgraded elevator, silicone roof, and covered parking.
Property Size16,761 SF
Lot Size0.90 Acres
Price / SF$349.02
Days on Market54
Property Features for 1150 E Orangethorpe Ave
General Information
Standard status
Active
Size
16,761 SF
Lot size
0.90 Acres
Zoning
C-O
Building Details
Year Built
1988
Year Renovated
2018
Stories
2
Tenancy
Multi
Listing Agency:
Economos Dewolf, Inc.
Listed By:
Geoffrey Dewolf · License #01319312
(949) 576-2751
Source:
Myfabuloushome
Added: Jul 18
Changed: Sep 8
Last Checked: Sep 8 at 7:09AM
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 Economos Dewolf, Inc.
Investment Insights
Based on property information with market context.
This two-story, multi-tenant office building offers extensive recent renovations completed in 2018, including high-class finishes throughout. Building improvements include a new silicone roof, an upgraded elevator, and high-efficiency HVAC units, supporting a turn-key look for professional tenants. The property also features expansive covered parking exclusively for the building.
For sale in Placentia, the building is positioned for medical conversion given the C-O zoning. Ownership flexibility is available, with the ability for a buyer to occupy a portion of the building in the near term and the entire building by 8/31/2026. Restaurants and amenities are noted in the immediate vicinity.
With its renovation timeline, dedicated parking, and zoning alignment for medical conversion, the property is designed to accommodate office and medical-use conversion requirements for an owner-occupant or tenant-led strategy.
For sale in Placentia, the building is positioned for medical conversion given the C-O zoning. Ownership flexibility is available, with the ability for a buyer to occupy a portion of the building in the near term and the entire building by 8/31/2026. Restaurants and amenities are noted in the immediate vicinity.
With its renovation timeline, dedicated parking, and zoning alignment for medical conversion, the property is designed to accommodate office and medical-use conversion requirements for an owner-occupant or tenant-led strategy.
Key Highlights
- Renovated two‑story, 16,761‑SF multi‑tenant office building on 0.90 acres (no association)
- 2018 renovations with high‑class finishes, including new silicone roof, upgraded elevator, and high‑efficiency HVAC units
- C‑O zoning allows medical conversion (per provided remarks)
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
$329,601
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
5.63%
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%
$6,592,020
$6.6M
Cap Rate 7%
$4,708,586
$4.7M
Cap Rate 9%
$3,662,233
$3.7M
Market Conditions
NOI Build-Up for 16,761 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
$500.8K $29.88/SF
− Vacancy
−$61.4K −$3.66/SF
EGI
$439.5K $26.22/SF
− OpEx
−$109.9K −$6.55/SF
NOI
$329.6K $19.66/SF
Area
Orange County, CA
Vacancy
12.25%
Lease Rate
$29.88 /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%
$6,592,020
Cap Rate 7%
$4,708,586
Cap Rate 9%
$3,662,233
Alternative Uses
Best Use
Office B
$4.71M
$4.12M – $5.49M
NOI $329,601 @ 7.0% cap · market cap 5.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.63M
$4.93M – $6.57M
NOI $394,078 @ 7.0% cap · market cap 6.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
814
Businesses Nearby
Explore this area
Business Placement
Demographics for 92870, CA
52,749
Population
17,545
Households
3
Avg Household Size
39
Median Age
44%
College-Educated
91%
High-School Grad
6.7 sq mi
ZIP Area
7,873
Density / Sq Mi
$110,575
Median Household Income
$53,074
Median Earnings
$2,267
Median Rent
$871,000
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Renovated two-story multi-tenant office building with high-efficiency HVAC, upgraded elevator, silicone roof, and covered parking.
Where is this office building located?
The property is located at 1150 E Orangethorpe Ave Placentia, CA.
What is the asking price?
The asking price for this property is $5,850,000.
What are key features of this property?
This property features: Renovated two‑story, 16,761‑SF multi‑tenant office building on 0.90 acres (no association); 2018 renovations with high‑class finishes, including new silicone roof, upgraded elevator, and high‑efficiency HVAC units; C‑O zoning allows medical conversion (per provided remarks)
