Delafield Office Building
For Sale
$5,400,000
2301 Sun Valley Dr, Delafield, WI 53018
32,800 SF office building in Delafield, WI for sale.
Property Size32,800 SF
Price / SF$164.63
Days on Market204
Property Features for 2301 Sun Valley Dr
General Information
Standard status
Active
Size
32,800 SF
Property subtype
Office
Listing Agency:
Growth Investment Group Pasade
(414) 640-8804
Listed By:
Rachel Schmidt · License #01749321
(414) 640-8804
Source:
Nmrk
Added: Jan 27
Changed: Aug 18
Last Checked: Aug 19 at 5:23AM
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 Growth Investment Group Pasade
Investment Insights
Based on property information with market context.
This 32,800 SF office building presents an investment opportunity in Delafield, Wisconsin. Zoned B-5, the property is located in the Milwaukee area. It features building-mounted signage along I-94 and is situated two minutes from I-94 and Hwy 83. The tenant roster includes DaVita Dialysis, Regus, Prohealth Care Sleep Center, and financial advisory firms. Located at the end of a cul-de-sac, the property offers a serene setting.
Key Highlights
- Prime location in the Milwaukee area with building‑mounted signage along I‑94.
- Easy access: Just two minutes to I‑94 & Hwy 83.
- 32,800 SF office building zoned B‑5.
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
$455,365
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
8.43%
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%
$9,107,300
$9.1M
Cap Rate 7%
$6,505,214
$6.5M
Cap Rate 9%
$5,059,611
$5.1M
Market Conditions
NOI Build-Up for 32,800 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
$814.8K $24.84/SF
− Vacancy
−$207.6K −$6.33/SF
EGI
$607.2K $18.51/SF
− OpEx
−$151.8K −$4.63/SF
NOI
$455.4K $13.88/SF
Area
Waukesha County, WI
Vacancy
25.48%
Lease Rate
$24.84 /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%
$9,107,300
Cap Rate 7%
$6,505,214
Cap Rate 9%
$5,059,611
Alternative Uses
Best Use
Healthcare Medical
$15.45M
$13.52M – $18.03M
NOI $1,081,672 @ 7.0% cap · market cap 20.03%
Second Best
Office B
$6.51M
$5.69M – $7.59M
NOI $455,365 @ 7.0% cap · market cap 8.43%
Theoretical Best
Flex RnD
$16.74M
$14.65M – $19.53M
NOI $1,171,811 @ 7.0% cap · market cap 21.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
423
Businesses Nearby
Explore this area
Business Placement
Demographics for 53018, WI
7,396
Population
3,431
Households
2.2
Avg Household Size
49
Median Age
54%
College-Educated
99%
High-School Grad
11.2 sq mi
ZIP Area
660
Density / Sq Mi
$130,511
Median Household Income
$62,037
Median Earnings
$1,492
Median Rent
$485,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - 32,800 SF office building in Delafield, WI for sale.
Where is this office building located?
The property is located at 2301 Sun Valley Dr Delafield, WI.
What is the asking price?
The asking price for this property is $5,400,000.
What are key features of this property?
This property features: Prime location in the Milwaukee area with building‑mounted signage along I‑94.; Easy access: Just two minutes to I‑94 & Hwy 83.; 32,800 SF office building zoned B‑5.
