Medical Office with Indoor
For Sale
$980,000
812 Emerald Bay Rd, South Lake Tahoe, CA 96150
Medical office property on Highway 89 with ample parking and an indoor pool used by current healthcare tenants.
Property Size2,458 SF
Lot Size0.36 Acres
Price / SF$398.70
Days on Market54
Property Features for 812 Emerald Bay Rd
General Information
Standard status
Active
Size
2,458 SF
Lot size
0.36 Acres
Property subtype
Office Medical
Zoning
General Commercial
Occupancy
96%
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
indoor pool
heated pool
Indoor Pool Creates One-Of-A-Kind Asset
0.4 miles from "The Y" in South Lake Tahoe
Large 0.36 Acre Lot with Plenty of Parking (8.54 spaces / 1000 SF)
Building Details
Building Size
2,458 SF
Year Built
1997
Listing Agency:
Marcus & Millichap - Sacramento
(775) 348-5234
Listed By:
Bret Nicholson · License #License(s): NV: S.0183859
(775) 348-5234
Source:
Marcusmillichap
Added: Jul 9
Changed: Aug 25
Last Checked: Aug 31 at 12:58PM
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 Marcus & Millichap - Sacramento
Investment Insights
Based on property information with market context.
The subject property at 812 Emerald Bay Road is a medical-oriented office building constructed in 1997. The tenant mix is currently led by a physical therapist, with an additional swimming instructor utilizing the indoor pool. The site includes a vacant private office suite, and the property is 96% occupied. An indoor, heated pool is a distinctive feature that supports both instruction and rehabilitation uses.
The property has frontage along Highway 89 (Emerald Bay Road) and provides ingress and egress from both Highway 89 and Roger Avenue. It is located approximately 0.4 miles north of “The Y” at the intersection of Highway 89 and Highway 50 in South Lake Tahoe.
The building is situated on a 0.36-acre parcel with ample parking and flexible General Commercial zoning, supporting a range of commercial uses consistent with the zoning designation.
The property has frontage along Highway 89 (Emerald Bay Road) and provides ingress and egress from both Highway 89 and Roger Avenue. It is located approximately 0.4 miles north of “The Y” at the intersection of Highway 89 and Highway 50 in South Lake Tahoe.
The building is situated on a 0.36-acre parcel with ample parking and flexible General Commercial zoning, supporting a range of commercial uses consistent with the zoning designation.
Key Highlights
- Built in 1997 medical office property at 812 Emerald Bay Road
- 96% occupied with in‑place tenants including a physical therapist and a swimming instructor
- Indoor heated pool on‑site used for swimming lessons and physical therapy rehabilitation
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
$44,449
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
4.54%
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%
$888,980
$889.0K
Cap Rate 7%
$634,986
$635.0K
Cap Rate 9%
$493,878
$493.9K
Market Conditions
NOI Build-Up for 2,458 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
$82.6K $33.60/SF
− Vacancy
−$8.5K −$3.46/SF
EGI
$74.1K $30.14/SF
− OpEx
−$29.6K −$12.06/SF
NOI
$44.4K $18.08/SF
Area
El Dorado County, CA
Vacancy
10.30%
Lease Rate
$33.60 /SF/Yr
Expense Ratio
40.00%
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%
$888,980
Cap Rate 7%
$634,986
Cap Rate 9%
$493,878
Alternative Uses
Best Use
Healthcare Medical
$635.0K
$555.6K – $740.8K
NOI $44,449 @ 7.0% cap · market cap 4.54%
Second Best
Office B
$577.1K
$504.9K – $673.3K
NOI $40,395 @ 7.0% cap · market cap 4.12%
Theoretical Best
Specialty Retail
$878.8K
$768.9K – $1.03M
NOI $61,515 @ 7.0% cap · market cap 6.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
573
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 96150, CA
29,518
Population
23,472
Households
1.3
Avg Household Size
40
Median Age
39%
College-Educated
92%
High-School Grad
163.2 sq mi
ZIP Area
181
Density / Sq Mi
$83,738
Median Household Income
$45,582
Median Earnings
$1,497
Median Rent
$649,100
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.
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- Blue Lake Animal Care Center — 1154 Emerald Bay Rd, South Lake Tahoe, CA 96150
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office property on Highway 89 with ample parking and an indoor pool used by current healthcare tenants.
Where is this medical office space located?
The property is located at 812 Emerald Bay Rd South Lake Tahoe, CA.
What is the asking price?
The asking price for this property is $980,000.
What are key features of this property?
This property features: Built in 1997 medical office property at 812 Emerald Bay Road; 96% occupied with in‑place tenants including a physical therapist and a swimming instructor; Indoor heated pool on‑site used for swimming lessons and physical therapy rehabilitation
