Medical Office with NN
For Sale
Contact for pricing
1536 FM 359 Rd, Richmond, TX 77406
Purpose-built dental facility with a corporate-guaranteed NN lease and annual rent increases.
Property Size4,900 SF
Price / SF$350
Days on Market8
Property Features for 1536 FM 359 Rd
General Information
Standard status
Active
Size
4,900 SF
Class
A
Property subtype
Retail, Office
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$124,339
Building Details
Year Built
1997
Buildings
1
Units
1
Tenancy
Single
Listing Agency:
Atlantic Capital Partners
(704) 375-7771
Listed By:
David Hoppe · License #NC 288268
Source:
Crexi
Added: Aug 4
Changed: Aug 10
Last Checked: Aug 10 at 6:07AM
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 Atlantic Capital Partners
Investment Insights
Based on property information with market context.
This 4,900-square-foot medical office property was constructed in 1997 as a purpose-built dental facility. The asset is leased to Heartland Dental, LLC under a corporate-guaranteed NN lease, with approximately 6.2 years remaining in the primary term. Contractual terms include 1.0% annual rent increases during the initial lease period, along with renewal options.
The property is located at 1536 FM 359 Road in Richmond, Texas, along a commercial corridor reporting approximately 21,700 vehicles per day. Richmond is approximately 30 miles southwest of Downtown Houston and serves as a residential and service center within Fort Bend County. The site is positioned within the Richmond-Rosenberg trade area and along the Grand Parkway corridor, where the source information identifies ongoing residential and commercial development.
The property is located at 1536 FM 359 Road in Richmond, Texas, along a commercial corridor reporting approximately 21,700 vehicles per day. Richmond is approximately 30 miles southwest of Downtown Houston and serves as a residential and service center within Fort Bend County. The site is positioned within the Richmond-Rosenberg trade area and along the Grand Parkway corridor, where the source information identifies ongoing residential and commercial development.
Key Highlights
- 4,900‑square‑foot medical office property constructed in 1997
- Leased to Heartland Dental, LLC under a corporate‑guaranteed NN lease
- Approximately 6.2 years remain in the primary lease term
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
$81,477
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
4.75%
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%
$1,629,540
$1.6M
Cap Rate 7%
$1,163,957
$1.2M
Cap Rate 9%
$905,300
$905.3K
Market Conditions
NOI Build-Up for 4,900 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
$145.2K $29.64/SF
− Vacancy
−$9.4K −$1.93/SF
EGI
$135.8K $27.71/SF
− OpEx
−$54.3K −$11.09/SF
NOI
$81.5K $16.63/SF
Area
Fort Bend County, TX
Vacancy
6.50%
Lease Rate
$29.64 /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%
$1,629,540
Cap Rate 7%
$1,163,957
Cap Rate 9%
$905,300
Alternative Uses
Best Use
Healthcare Medical
$1.16M
$1.02M – $1.36M
NOI $81,477 @ 7.0% cap · market cap 4.75%
Second Best
Office B
$974.2K
$852.4K – $1.14M
NOI $68,195 @ 7.0% cap · market cap 3.98%
Theoretical Best
Multifamily LT 5
$61.04M
$53.41M – $71.22M
NOI $4,272,942 @ 7.0% cap · market cap 249.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
385
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77406, TX
58,703
Population
22,096
Households
2.7
Avg Household Size
37
Median Age
49%
College-Educated
95%
High-School Grad
57.6 sq mi
ZIP Area
1,019
Density / Sq Mi
$143,023
Median Household Income
$65,609
Median Earnings
$1,986
Median Rent
$383,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Brazos Bend Animal Hospital — 721 FM359, Richmond, TX 77406
Frequently Asked Questions
What type of property is this?
Medical Office Space - Purpose-built dental facility with a corporate-guaranteed NN lease and annual rent increases.
Where is this medical office space located?
The property is located at 1536 FM 359 Rd Richmond, TX.
What is the asking price?
The asking price for this property is $1,715,000.
What are key features of this property?
This property features: 4,900‑square‑foot medical office property constructed in 1997; Leased to Heartland Dental, LLC under a corporate‑guaranteed NN lease; Approximately 6.2 years remain in the primary lease term
