Denver Medical Office Investment
For Sale
$1,100,000
3025 W 38 Avenue, Denver, CO 80211
Stable medical tenant, long-term lease, redevelopment potential.
Property Size3,551 SF
Lot Size0.14 Acres
Price / SF$309.77
Days on Market220
Property Features for 3025 W 38 Avenue
General Information
Standard status
Active
Size
3,551 SF
Lot size
0.14 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$17,333
Amenities
220 Volts
Composition Roof
Concrete Driveway
Building Details
Year Built
1946
Listing Agency:
BARON ENTERPRISES INC
(720) 575-6100
Listed By:
EDDIE LEDERMAN
Source:
Corcoran
Added: Jan 14
Changed: Aug 8
Last Checked: Jul 15 at 9:00PM
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 BARON ENTERPRISES INC
Investment Insights
Based on property information with market context.
Located at the intersection of West 38th Avenue and Federal Boulevard, this property offers frontage in a commercial corridor. Situated where the Berkeley and Highlands neighborhoods meet, the location benefits from traffic, walkability, and access to residential communities and local businesses. The surrounding area is experiencing investment in infrastructure and commercial infill. The property is occupied by a single medical tenant, Serenity Dental Arts, under a long-term triple-net (NNN) lease with approximately four and a half years remaining and annual rent escalations through 2030 with 2 five year options to renew. The tenant operates profitably in a space optimized for dental or other medical office use. Zoned U-MS-3, the property allows for up to three stories of development. With a lot size of over 5,600 square feet and six dedicated parking spaces, the site is positioned for vertical expansion or mixed-use repositioning. The property size is 3,551 square feet.
Key Highlights
- Long‑term NNN lease with stable medical tenant (Serenity Dental Arts) provides predictable cash flow.
- Prime location at a signalized intersection in a dynamic commercial corridor.
- Zoned U‑MS‑3 allowing for up to three stories of development, offering future expansion potential.
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
$52,029
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
4.73%
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%
$1,040,580
$1.0M
Cap Rate 7%
$743,271
$743.3K
Cap Rate 9%
$578,100
$578.1K
Market Conditions
NOI Build-Up for 3,551 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
$93.7K $26.40/SF
− Vacancy
−$24.4K −$6.86/SF
EGI
$69.4K $19.54/SF
− OpEx
−$17.3K −$4.88/SF
NOI
$52.0K $14.65/SF
Area
Denver, CO
Vacancy
26.00%
Lease Rate
$26.40 /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%
$1,040,580
Cap Rate 7%
$743,271
Cap Rate 9%
$578,100
Alternative Uses
Best Use
Office B
$743.3K
$650.4K – $867.2K
NOI $52,029 @ 7.0% cap · market cap 4.73%
Second Best
Healthcare Medical
$672.1K
$588.1K – $784.1K
NOI $47,044 @ 7.0% cap · market cap 4.28%
Theoretical Best
Office A
$1.13M
$989.1K – $1.32M
NOI $79,129 @ 7.0% cap · market cap 7.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,556
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80211, CO
37,940
Population
20,973
Households
1.8
Avg Household Size
34
Median Age
71%
College-Educated
92%
High-School Grad
4.5 sq mi
ZIP Area
8,431
Density / Sq Mi
$117,685
Median Household Income
$78,573
Median Earnings
$1,931
Median Rent
$747,800
Median Home Value
Market
Vacancy Rate% for Office in Denver, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Stable medical tenant, long-term lease, redevelopment potential.
Where is this medical office space located?
The property is located at 3025 W 38 Avenue Denver, CO.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Long‑term NNN lease with stable medical tenant (Serenity Dental Arts) provides predictable cash flow.; Prime location at a signalized intersection in a dynamic commercial corridor.; Zoned U‑MS‑3 allowing for up to three stories of development, offering future expansion potential.
