Walnut Creek Office Redevelopment
For Sale
Contact for pricing
Pending
1200-1350 Montego, Walnut Creek, CA 94598
Three vacant office buildings on 5.52 acres near John Muir Hospital.
Property Size122,821 SF
Lot Size5.52 Acres
Days on Market689
Property Features for 1200-1350 Montego
General Information
Standard status
Pending
Size
122,821 SF
Total Parking Spaces
338
Lot size
5.52 Acres
Property subtype
Office
Zoning
PD-888 with O-C Overlay (Office, Medical)
Building Details
Year Built
1980
Listing Agency:
Colliers International Walnut Creek
Listed By:
Larry Easterly · License #CA 00958987
(925) 279-4655
Source:
Crexi
Added: Oct 16, 2024
Changed: Sep 2
Last Checked: Aug 31 at 7:23PM
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 Colliers International Walnut Creek
Investment Insights
Based on property information with market context.
Montego Ridge is a three-building office complex, totaling approximately 122,820 square feet of buildings over 5.52 acres of land. The complex includes 1200 Montego with approximately 31,258 square feet, 1250 Montego with approximately 24,923 square feet, and 1350 Montego with approximately 66,640 square feet. The property is located near John Muir Medical Center, the region’s primary trauma center, and one mile from downtown Walnut Creek. The property consists of three two-story office buildings with over 1,000 feet of frontage on Ygnacio Valley Road. There are 338 on-site designated parking spaces, 37 street parking spaces, and 16 additional parking spaces available across the street. Each building is located on a separate parcel, and the buildings are available individually, in combination, or as an entire campus. Potential uses for the site include office, medical office, assisted living, and other residential care uses. The previous ownership invested more than $3.4 million in securing the roof, equipment, landscaping and exterior renovations. The property is currently vacant.
Key Highlights
- Unique investment/redevelopment opportunity on 5.52 acres next to John Muir Hospital.
- Three office buildings totaling approximately 122,820 square feet, offering flexible sale/lease options.
- Located one mile from downtown Walnut Creek and half a mile from John Muir Medical Center.
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
$2,220,727
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
7.40%
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%
$44,414,540
$44.4M
Cap Rate 7%
$31,724,671
$31.7M
Cap Rate 9%
$24,674,744
$24.7M
Market Conditions
NOI Build-Up for 122,821 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
$3.61M $29.40/SF
− Vacancy
−$650.0K −$5.29/SF
EGI
$2.96M $24.11/SF
− OpEx
−$740.2K −$6.03/SF
NOI
$2.22M $18.08/SF
Area
Contra Costa County, CA
Vacancy
18.00%
Lease Rate
$29.40 /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%
$44,414,540
Cap Rate 7%
$31,724,671
Cap Rate 9%
$24,674,744
Alternative Uses
Best Use
Office B
$31.72M
$27.76M – $37.01M
NOI $2,220,727 @ 7.0% cap · market cap 7.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$46.43M
$40.62M – $54.16M
NOI $3,249,844 @ 7.0% cap · market cap 10.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,658
Businesses Nearby
Explore this area
Business Placement
Demographics for 94598, CA
26,826
Population
10,735
Households
2.5
Avg Household Size
46
Median Age
74%
College-Educated
98%
High-School Grad
20.6 sq mi
ZIP Area
1,302
Density / Sq Mi
$188,170
Median Household Income
$99,757
Median Earnings
$2,989
Median Rent
$1,307,100
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 - Three vacant office buildings on 5.52 acres near John Muir Hospital.
Where is this office building located?
The property is located at 1200-1350 Montego Walnut Creek, CA.
What is the asking price?
The asking price for this property is $30,000,000.
What are key features of this property?
This property features: Unique investment/redevelopment opportunity on 5.52 acres next to John Muir Hospital.; Three office buildings totaling approximately 122,820 square feet, offering flexible sale/lease options.; Located one mile from downtown Walnut Creek and half a mile from John Muir Medical Center.
