Medical Center with Central
For Sale
$18,500,000
1403 Tustin Avenue, Santa Ana, CA 92705
Three-story healthcare property with a Medicare-certified ASC, two elevators, and 218 parking spaces.
Property Size61,833 SF
Price / SF$299.19
Days on Market387
Property Features for 1403 Tustin Avenue
General Information
Standard status
Active
Size
61,833 SF
Elevators
Yes
Property subtype
General Commercial
Occupancy
79%
Financials
Asking Price
$18,500,000
Cap Rate
7.12%
Additional Details
Highway Access
Yes
Amenities
oversized central atrium with lush greenery and seating areas
3
218 Parking Spaces.
Building Details
Year Built
1987
Stories
3
Tenancy
Multi
Listing Agency:
Economos Dewolf, Inc.
(949) 576-2751
Listed By:
Geoffrey Dewolf · License #01319312
Source:
Xome
Added: Aug 8, 2025
Changed: Aug 29
Last Checked: Aug 29 at 1:17PM
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 Economos Dewolf, Inc.
Investment Insights
Based on property information with market context.
Located at 1403 Tustin Avenue in Santa Ana, this 61,833-square-foot medical center was built in 1987 and occupies three floors. The facility includes a Medicare-certified ambulatory surgery center, two elevators, and 218 parking spaces. An oversized central atrium provides interior seating and landscaped greenery.
The property is 79% occupied, with a 6.14-year WALT and a 7.12% in-place cap rate. Acuity Eye Group occupies 54% of the building, providing a substantial healthcare tenancy within the asset. The property is also within walking distance of amenities, supporting convenient daily access for occupants and visitors.
The property is 79% occupied, with a 6.14-year WALT and a 7.12% in-place cap rate. Acuity Eye Group occupies 54% of the building, providing a substantial healthcare tenancy within the asset. The property is also within walking distance of amenities, supporting convenient daily access for occupants and visitors.
Key Highlights
- 61,833 SF medical center built in 1987 across three floors
- 79% occupied with a 6.14 Year WALT and 7.12% in‑place cap rate
- Acuity Eye Group occupies 54% of the building
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
$975,122
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
5.27%
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%
$19,502,440
$19.5M
Cap Rate 7%
$13,930,314
$13.9M
Cap Rate 9%
$10,834,689
$10.8M
Market Conditions
NOI Build-Up for 61,833 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
$1.60M $25.80/SF
− Vacancy
−$295.1K −$4.77/SF
EGI
$1.30M $21.03/SF
− OpEx
−$325.0K −$5.26/SF
NOI
$975.1K $15.77/SF
Area
ZIP 92705
Vacancy
18.50%
Lease Rate
$25.80 /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%
$19,502,440
Cap Rate 7%
$13,930,314
Cap Rate 9%
$10,834,689
Alternative Uses
Best Use
Office B
$13.93M
$12.19M – $16.25M
NOI $975,122 @ 7.0% cap · market cap 5.27%
Second Best
Healthcare Medical
$13.01M
$11.39M – $15.18M
NOI $910,874 @ 7.0% cap · market cap 4.92%
Theoretical Best
Specialty Retail
$18.58M
$16.26M – $21.68M
NOI $1,300,812 @ 7.0% cap · market cap 7.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
79%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,803
Businesses Nearby
Explore this area
Business Placement
Demographics for 92705, CA
45,902
Population
16,642
Households
2.8
Avg Household Size
40
Median Age
46%
College-Educated
87%
High-School Grad
11.8 sq mi
ZIP Area
3,890
Density / Sq Mi
$125,928
Median Household Income
$51,830
Median Earnings
$2,250
Median Rent
$1,135,600
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?
Medical center - Three-story healthcare property with a Medicare-certified ASC, two elevators, and 218 parking spaces.
Where is this medical center located?
The property is located at 1403 Tustin Avenue Santa Ana, CA.
What is the asking price?
The asking price for this property is $18,500,000.
What are key features of this property?
This property features: 61,833 SF medical center built in 1987 across three floors; 79% occupied with a 6.14 Year WALT and 7.12% in‑place cap rate; Acuity Eye Group occupies 54% of the building
