Medical Building Investment
For Sale
$1,250,000
2225 S Danville, Abilene, TX 79605
100% occupied medical building with triple net leases.
Property Size4,500 SF
Days on Market192
Property Features for 2225 S Danville
General Information
Standard status
Active
Size
4,500 SF
Class
A
Property subtype
Office - Medical Office
Building Details
Building Size
4,500 SF
Year Built
1977
Year Renovated
2018
Units
2
Listing Agency:
Paul Johnson & Associates
Listed By:
Matthew Muzechenko · License ##570282
(325) 698-5661
Source:
Commercialcafe
Added: Mar 26
Changed: Sep 26
Last Checked: Oct 2 at 5:30PM
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 Paul Johnson & Associates
Investment Insights
Based on property information with market context.
This property presents an investment opportunity as a 100% occupied medical building with triple net leases and annual increases. The building is located on S. Danville, offering visibility and access to Highway 83/84, situated between S. 14th Street and SW Drive on the access road.
Key Highlights
- 100% Occupied: Enjoy an immediate income stream.
- Medical Building: Benefit from a stable tenant base.
- Triple Net Leases: Minimal landlord responsibilities.
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
$51,500
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
4.12%
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%
$1,030,000
$1.0M
Cap Rate 7%
$735,714
$735.7K
Cap Rate 9%
$572,222
$572.2K
Market Conditions
NOI Build-Up for 4,500 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
$91.8K $20.40/SF
− Vacancy
−$6.0K −$1.33/SF
EGI
$85.8K $19.07/SF
− OpEx
−$34.3K −$7.63/SF
NOI
$51.5K $11.44/SF
Area
Abilene, TX
Vacancy
6.50%
Lease Rate
$20.40 /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%
$1,030,000
Cap Rate 7%
$735,714
Cap Rate 9%
$572,222
Alternative Uses
Best Use
Healthcare Medical
$735.7K
$643.8K – $858.3K
NOI $51,500 @ 7.0% cap · market cap 4.12%
Second Best
Office B
$713.1K
$624.0K – $831.9K
NOI $49,916 @ 7.0% cap · market cap 3.99%
Theoretical Best
Office A
$1.00M
$879.1K – $1.17M
NOI $70,330 @ 7.0% cap · market cap 5.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
442
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79605, TX
30,239
Population
12,795
Households
2.4
Avg Household Size
35
Median Age
25%
College-Educated
87%
High-School Grad
11.0 sq mi
ZIP Area
2,749
Density / Sq Mi
$59,565
Median Household Income
$33,537
Median Earnings
$1,077
Median Rent
$159,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 100% occupied medical building with triple net leases.
Where is this medical office space located?
The property is located at 2225 S Danville Abilene, TX.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 100% Occupied: Enjoy an immediate income stream.; Medical Building: Benefit from a stable tenant base.; Triple Net Leases: Minimal landlord responsibilities.
