Medical Office Condo For
For Sale
Contact for pricing
280 SIERRA COLLEGE DR, Grass Valley, CA 95945
NNN-leased medical office condo occupied by Dignity Health.
Property Size5,665 SF
Price / SF$348.63
Days on Market104
Property Features for 280 SIERRA COLLEGE DR
General Information
Standard status
Active
Size
5,665 SF
Class
A
Property subtype
Office
Zoning
CBP
Lease Type
NNN
Building Details
Year Built
2001
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Tucker Commercial
(530) 272-7222
Listed By:
Tyson Tucker · License #01804034
Source:
Crexi
Added: May 18
Changed: Aug 23
Last Checked: Aug 29 at 12:41AM
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 Tucker Commercial
Investment Insights
Based on property information with market context.
Available for sale is Suite 120 at 280 Sierra College Drive, a 5,665 square foot medical office condominium. The property is NNN-leased and occupied by Dignity Health Medical Group – Sierra Nevada, a subsidiary of CommonSpirit Health. Dignity Health has occupied the suite since 2010, operating a family medicine practice less than two minutes from Sierra Nevada Memorial Hospital. The investment is fully passive under the NNN lease, where the tenant assumes all interior maintenance. The owners' association covers exterior, structural, parking, and common area maintenance. The Sierra College medical corridor is a tight medical office submarket with approximately 2.5% vacancy. The property offers passive income in a supply-constrained market with a 16-year tenancy, 3% annual escalations, and two FMV renewal options.
Key Highlights
- NNN‑leased medical office condominium occupied by Dignity Health Medical Group – Sierra Nevada (subsidiary of CommonSpirit Health, S&P: A-).
- Priced at $2,260,000, representing a 7.15% cap rate on NOI of $161,549.
- Fully passive investment under NNN lease; tenant assumes interior maintenance, owners' association covers exterior, structural, parking, and common area maintenance.
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
$113,419
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
5.74%
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%
$2,268,380
$2.3M
Cap Rate 7%
$1,620,271
$1.6M
Cap Rate 9%
$1,260,211
$1.3M
Market Conditions
NOI Build-Up for 5,665 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
$210.7K $37.20/SF
− Vacancy
−$21.7K −$3.83/SF
EGI
$189.0K $33.37/SF
− OpEx
−$75.6K −$13.35/SF
NOI
$113.4K $20.02/SF
Area
Nevada County, CA
Vacancy
10.30%
Lease Rate
$37.20 /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%
$2,268,380
Cap Rate 7%
$1,620,271
Cap Rate 9%
$1,260,211
Alternative Uses
Best Use
Healthcare Medical
$1.62M
$1.42M – $1.89M
NOI $113,419 @ 7.0% cap · market cap 5.74%
Second Best
Office B
$983.3K
$860.4K – $1.15M
NOI $68,830 @ 7.0% cap · market cap 3.49%
Theoretical Best
Specialty Retail
$2.03M
$1.77M – $2.36M
NOI $141,774 @ 7.0% cap · market cap 7.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
992
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95945, CA
26,302
Population
13,051
Households
2
Avg Household Size
50
Median Age
32%
College-Educated
94%
High-School Grad
61.1 sq mi
ZIP Area
430
Density / Sq Mi
$61,068
Median Household Income
$41,072
Median Earnings
$1,420
Median Rent
$496,600
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - NNN-leased medical office condo occupied by Dignity Health.
Where is this medical office space located?
The property is located at 280 SIERRA COLLEGE DR Grass Valley, CA.
What is the asking price?
The asking price for this property is $1,975,000.
What are key features of this property?
This property features: NNN‑leased medical office condominium occupied by Dignity Health Medical Group – Sierra Nevada (subsidiary of CommonSpirit Health, S&P: A-).; Priced at $2,260,000, representing a 7.15% cap rate on NOI of $161,549.; Fully passive investment under NNN lease; tenant assumes interior maintenance, owners' association covers exterior, structural, parking, and common area maintenance.
