Two-Story Office
For Sale
$5,995,000
2474 Patterson Road, Grand Junction, CO 81505
CommercialSale, Grand Junction, CO
Property Size21,805 SF
Lot Size1.84 Acres
Price / SF$274.94
Days on Market497
Property Features for 2474 Patterson Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
MU-2
Directions
Go east on Patterson to 24 1/2 road. Continue east to 2474 Patterson Rd is on the north side of Patterson Road.
Subdivision
North Grand Junction
Standard status
Active
Lot size
1.84 Acres
Taxes and HOA fees
Tax Annual Amount
62760
Listing Agency:
VENTURE GROUP
(970) 892-2200
Listed By:
Theresa Englbrecht · License #FA100006764
(970) 201-1849
Added: Apr 23, 2025
Changed: Aug 31
Last Checked: Sep 1 at 10:06AM
MLS# 20251793
Copyright © 2026 Grand Junction Area Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This two-level office building contains 21,805 square feet on a 1.84-acre parcel, with parking positioned at both the front and rear. The property is occupied by three tenants. Current occupants include a real estate company leasing the 9,156-square-foot first floor, Community Hospital billing offices on 3,800 square feet of the second floor, and Major Mortgage using 5,400 square feet at a variable rate.
The building is located at 2474 Patterson Road in Grand Junction, between St. Mary's Hospital and Community Hospitals. Existing leases produce a 7% cap rate, and lease terms are available upon request. The configuration provides established office occupancy with additional flexibility for future leasing or corporate use.
The building is located at 2474 Patterson Road in Grand Junction, between St. Mary's Hospital and Community Hospitals. Existing leases produce a 7% cap rate, and lease terms are available upon request. The configuration provides established office occupancy with additional flexibility for future leasing or corporate use.
Key Highlights
- 21,805 SF office building arranged across two floors
- 1.84‑acre site with parking at the front and rear
- Three current tenants occupy the property
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
$206,057
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
3.44%
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%
$4,121,140
$4.1M
Cap Rate 7%
$2,943,671
$2.9M
Cap Rate 9%
$2,289,522
$2.3M
Market Conditions
NOI Build-Up for 21,805 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
$392.5K $18.00/SF
− Vacancy
−$117.7K −$5.40/SF
EGI
$274.7K $12.60/SF
− OpEx
−$68.7K −$3.15/SF
NOI
$206.1K $9.45/SF
Area
Mesa County, CO
Vacancy
30.00%
Lease Rate
$18.00 /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%
$4,121,140
Cap Rate 7%
$2,943,671
Cap Rate 9%
$2,289,522
Alternative Uses
Best Use
Office B
$2.94M
$2.58M – $3.43M
NOI $206,057 @ 7.0% cap · market cap 3.44%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$41.38M
$36.21M – $48.28M
NOI $2,896,576 @ 7.0% cap · market cap 48.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,565
Businesses Nearby
Explore this area
Business Placement
Demographics for 81505, CO
11,791
Population
5,379
Households
2.2
Avg Household Size
41
Median Age
42%
College-Educated
96%
High-School Grad
72.1 sq mi
ZIP Area
164
Density / Sq Mi
$87,677
Median Household Income
$46,560
Median Earnings
$1,424
Median Rent
$436,800
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?
Office building - Leased office property with three occupants and parking on a 1.84-acre site along Patterson Road.
Where is this office building located?
The property is located at 2474 Patterson Road Grand Junction, CO.
What is the asking price?
The asking price for this property is $5,995,000.
What are key features of this property?
This property features: 21,805 SF office building arranged across two floors; 1.84‑acre site with parking at the front and rear; Three current tenants occupy the property
