Whitehorse Medical Center Investment
For Sale
$6,000,000
Pending
875 Wesley St, Arlington, WA 98223
Multi-tenant medical office condo near Skagit Regional Health campus.
Property Size15,271 SF
Days on Market719
Property Features for 875 Wesley St
General Information
Standard status
Pending
Size
15,271 SF
Property subtype
Commercial
Building Details
Year Built
1991
Listing Agency:
LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
(206) 600-9294
Listed By:
JEFF AYERS · License #105705
Source:
Corcoran
Added: Sep 13, 2024
Changed: Aug 8
Last Checked: Jul 23 at 9:22AM
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 LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
Investment Insights
Based on property information with market context.
The Whitehorse Medical Center in Arlington, WA, presents an opportunity for purchase. Located adjacent to the Skagit Regional Health campus and Cascade Valley Hospital, this multi-tenant medical office condo is anchored by Skagit Regional Health and Western Washington Medical Group. The property, with a total size of 15271 square feet, is suitable for a value-add investment or an owner-occupied medical group seeking to establish a presence in Arlington. The property features a rent roll with rental rates on occupied spaces averaging $29.36 per square foot, NNN. The pricing is based on the current 87% occupancy. Only 5,152 square feet are leased on a long-term lease.
Key Highlights
- Anchored by Skagit Regional Health and Western Washington Medical Group.
- Located adjacent to the Skagit Regional Health campus and Cascade Valley Hospital.
- Value‑add investment opportunity with upside through leasing vacant units.
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
$271,997
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
4.53%
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%
$5,439,940
$5.4M
Cap Rate 7%
$3,885,671
$3.9M
Cap Rate 9%
$3,022,189
$3.0M
Market Conditions
NOI Build-Up for 15,271 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
$417.8K $27.36/SF
− Vacancy
−$55.2K −$3.61/SF
EGI
$362.7K $23.75/SF
− OpEx
−$90.7K −$5.94/SF
NOI
$272.0K $17.81/SF
Area
Snohomish County, WA
Vacancy
13.20%
Lease Rate
$27.36 /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%
$5,439,940
Cap Rate 7%
$3,885,671
Cap Rate 9%
$3,022,189
Alternative Uses
Best Use
Office B
$3.89M
$3.40M – $4.53M
NOI $271,997 @ 7.0% cap · market cap 4.53%
Second Best
Healthcare Medical
$3.19M
$2.79M – $3.73M
NOI $223,588 @ 7.0% cap · market cap 3.73%
Theoretical Best
Office A
$4.26M
$3.73M – $4.97M
NOI $298,117 @ 7.0% cap · market cap 4.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
561
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98223, WA
45,139
Population
18,224
Households
2.5
Avg Household Size
40
Median Age
21%
College-Educated
93%
High-School Grad
316.2 sq mi
ZIP Area
143
Density / Sq Mi
$96,478
Median Household Income
$52,487
Median Earnings
$1,780
Median Rent
$556,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Arlington Veterinary Hospital — 7728 204th St NE suite b, Arlington, WA 98223
- Northwest Veterinary Clinic — 134 N W Ave, Arlington, WA 98223
- Performance Horse Veterinary — Arlington, WA 98223
- Rosie Donald G DVM — Arlington, WA 98223
Frequently Asked Questions
What type of property is this?
Medical Office Space - Multi-tenant medical office condo near Skagit Regional Health campus.
Where is this medical office space located?
The property is located at 875 Wesley St Arlington, WA.
What is the asking price?
The asking price for this property is $6,000,000.
What are key features of this property?
This property features: Anchored by Skagit Regional Health and Western Washington Medical Group.; Located adjacent to the Skagit Regional Health campus and Cascade Valley Hospital.; Value‑add investment opportunity with upside through leasing vacant units.
