Value-Add Medical Office
For Sale
$19,975,000
2501 Jimmy Johnson Blvd, Port Arthur, TX 77640
Well-maintained MOB adjacent to an acute care hospital, offering an established tenancy base and upside for incremental cash flow.
Property Size117,479 SF
Price / SF$170.03
Days on Market94
Property Features for 2501 Jimmy Johnson Blvd
General Information
Standard status
Active
Size
117,479 SF
Property subtype
Office
Amenities
VALUE-ADD MOB OPPORUNITY
Well-Maintained MOB with Ample Surface Parking
Medical Property Trust is HCA's Landlord
Regional Professional Building Offers a Full Range of Medical Providers including Cardiology, Orthopedics & Primary Care
The MOB is Centrally Located to Serve Port Arthur and Surrounding Communities
Eight (8) Hotels Including One (1) Under Development Located within One-Half Mile of the Medical Office Building.
Adjacent to HSA (Healthcare Systems of America Hospital); A 204-Bed Acute Care Hospital that has Earned Numerous Distinctions & Accreditations. Includes a Separate Outpatient Center.
Building Details
Building Size
117,479 SF
Year Built
2006
Tenancy
Multi
Listing Agency:
(713) 452-4243
Listed By:
Keith Lloyd · License #License(s): TX: 307120
(713) 452-4243
Source:
Marcusmillichap
Added: Jun 1
Changed: Aug 8
Last Checked: Sep 1 at 2:44PM
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 Keith Lloyd
Investment Insights
Based on property information with market context.
The Regional Professional Building is a well-maintained medical office building built to support day-to-day healthcare delivery, with a practical layout and ample surface parking for patient and staff convenience. The property is home to a diversified range of medical services, including cardiology, orthopedics, and primary care, creating a mix intended to reduce reliance on any single specialty. At approximately 117,479 square feet, the building is positioned as a value-add investment with opportunities to enhance cash flow through leasing, rental rate optimization, and potential operational efficiencies.
The asset’s location is directly adjacent to a 204-bed acute care hospital operated by Healthcare Systems of America, creating a tightly integrated medical ecosystem. The hospital’s multiple distinctions and accreditations support its role as a key regional provider. The surrounding area also includes hospitality, dining, and retail amenities, with eight hotels in the immediate vicinity, one under development, helping reinforce ongoing business and visitor demand across the Beaumont-Port Arthur MSA.
For investors and healthcare operators, the building’s established tenancy and specialty breadth align well with ongoing patient demand generated by a regional medical hub. Its proximity to a major acute care facility supports long-term occupancy durability, while the property’s condition and centralized reach across nearby communities can help sustain interest from medical practices seeking a stable platform for growth.
The asset’s location is directly adjacent to a 204-bed acute care hospital operated by Healthcare Systems of America, creating a tightly integrated medical ecosystem. The hospital’s multiple distinctions and accreditations support its role as a key regional provider. The surrounding area also includes hospitality, dining, and retail amenities, with eight hotels in the immediate vicinity, one under development, helping reinforce ongoing business and visitor demand across the Beaumont-Port Arthur MSA.
For investors and healthcare operators, the building’s established tenancy and specialty breadth align well with ongoing patient demand generated by a regional medical hub. Its proximity to a major acute care facility supports long-term occupancy durability, while the property’s condition and centralized reach across nearby communities can help sustain interest from medical practices seeking a stable platform for growth.
Key Highlights
- Medical office building (MOB) built in 2006 and described as well‑maintained
- Directly adjacent to a 204‑bed acute care hospital operated by Healthcare Systems of America (HSA)
- Hospital‑adjacent medical ecosystem with established tenancy, supporting long‑term occupancy focus
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
$1,583,154
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
7.93%
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%
$31,663,080
$31.7M
Cap Rate 7%
$22,616,486
$22.6M
Cap Rate 9%
$17,590,600
$17.6M
Market Conditions
NOI Build-Up for 117,479 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
$2.38M $20.28/SF
− Vacancy
−$271.6K −$2.31/SF
EGI
$2.11M $17.97/SF
− OpEx
−$527.7K −$4.49/SF
NOI
$1.58M $13.48/SF
Area
Jefferson County, TX
Vacancy
11.40%
Lease Rate
$20.28 /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%
$31,663,080
Cap Rate 7%
$22,616,486
Cap Rate 9%
$17,590,600
Alternative Uses
Best Use
Office B
$22.62M
$19.79M – $26.39M
NOI $1,583,154 @ 7.0% cap · market cap 7.93%
Second Best
Healthcare Medical
$22.59M
$19.77M – $26.35M
NOI $1,581,280 @ 7.0% cap · market cap 7.92%
Theoretical Best
Multifamily LT 5
$1,319.93M
$1,154.94M – $1,539.91M
NOI $92,394,813 @ 7.0% cap · market cap 462.55%
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
408
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77640, TX
16,618
Population
9,020
Households
1.8
Avg Household Size
39
Median Age
12%
College-Educated
84%
High-School Grad
37.3 sq mi
ZIP Area
446
Density / Sq Mi
$50,832
Median Household Income
$34,273
Median Earnings
$1,163
Median Rent
$97,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Well-maintained MOB adjacent to an acute care hospital, offering an established tenancy base and upside for incremental cash flow.
Where is this medical office space located?
The property is located at 2501 Jimmy Johnson Blvd Port Arthur, TX.
What is the asking price?
The asking price for this property is $19,975,000.
What are key features of this property?
This property features: Medical office building (MOB) built in 2006 and described as well‑maintained; Directly adjacent to a 204‑bed acute care hospital operated by Healthcare Systems of America (HSA); Hospital‑adjacent medical ecosystem with established tenancy, supporting long‑term occupancy focus
