Versatile Medical/Office Building For
For Sale
$5,900,000
402 S John Redditt Drive, Lufkin, TX 75904
22,959 SF medical/office building with pool and ample parking.
Property Size22,959 SF
Price / SF$256.98
Days on Market112
Property Features for 402 S John Redditt Drive
General Information
Standard status
Active
Size
22,959 SF
Property subtype
Commercial
Zoning
Commercial
Building Details
Building Size
22,959 SF
Year Built
2009
Stories
2
Listing Agency:
Gann Medford Real Estate Inc.
(936) 634-8888
Listed By:
Cindy Pierce · License #298618
(936) 414-2174
Source:
Signaturere
Added: Apr 22
Changed: Aug 8
Last Checked: Aug 11 at 1:46PM
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 Gann Medford Real Estate Inc.
Investment Insights
Based on property information with market context.
This 22,959 square foot building features a first floor with a vestibule entrance including a stairwell and elevator, a reception waiting room, business reception, conference or break room, and an administration area. It also contains a nurses station, 7 exam rooms, a large therapy or gym room, a pediatric therapy room, a whirlpool room, and a speech therapy room, along with 2 private offices. An indoor pool measuring 2,740 square feet includes a ramp entry and therapy area, lap lanes, wheelchair accessibility, and is heated for year-round use. Men's and women's locker rooms are available. The second floor features a waiting area with a reception window. One suite, previously used for home health, includes a workroom, data room, marketing area, break room, and 3 private offices. The second suite, previously used as a sleep lab, includes a waiting room, reception area, file room, small conference room, break room, 4 exam rooms, a workstation, a private office, and 2 sleep labs. The property provides parking for 77 vehicles and has 212 feet of frontage on South John Redditt Drive.
Key Highlights
- Indoor pool (2,740 sq ft) with ramp entry, therapy area, lap lanes, wheelchair accessibility, and heated for year‑round use.
- Versatile layout suitable for medical, therapy, or office use with multiple exam rooms, therapy rooms, private offices, and reception areas.
- Ample parking with space for 77 vehicles.
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
$297,028
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
5.03%
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%
$5,940,560
$5.9M
Cap Rate 7%
$4,243,257
$4.2M
Cap Rate 9%
$3,300,311
$3.3M
Market Conditions
NOI Build-Up for 22,959 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
$545.5K $23.76/SF
− Vacancy
−$149.5K −$6.51/SF
EGI
$396.0K $17.25/SF
− OpEx
−$99.0K −$4.31/SF
NOI
$297.0K $12.94/SF
Area
Angelina County, TX
Vacancy
27.40%
Lease Rate
$23.76 /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%
$5,940,560
Cap Rate 7%
$4,243,257
Cap Rate 9%
$3,300,311
Alternative Uses
Best Use
Office B
$4.24M
$3.71M – $4.95M
NOI $297,028 @ 7.0% cap · market cap 5.03%
Second Best
Healthcare Medical
$2.56M
$2.24M – $2.99M
NOI $179,214 @ 7.0% cap · market cap 3.04%
Theoretical Best
Office A
$6.47M
$5.66M – $7.55M
NOI $452,944 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
663
Businesses Nearby
Explore this area
Business Placement
Demographics for 75904, TX
34,680
Population
14,829
Households
2.3
Avg Household Size
38
Median Age
19%
College-Educated
88%
High-School Grad
160.5 sq mi
ZIP Area
216
Density / Sq Mi
$59,325
Median Household Income
$36,711
Median Earnings
$1,086
Median Rent
$173,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Rehabilitation center - 22,959 SF medical/office building with pool and ample parking.
Where is this rehabilitation center located?
The property is located at 402 S John Redditt Drive Lufkin, TX.
What is the asking price?
The asking price for this property is $5,900,000.
What are key features of this property?
This property features: Indoor pool (2,740 sq ft) with ramp entry, therapy area, lap lanes, wheelchair accessibility, and heated for year‑round use.; Versatile layout suitable for medical, therapy, or office use with multiple exam rooms, therapy rooms, private offices, and reception areas.; Ample parking with space for 77 vehicles.
