Two-Tenant Medical Office
New
For Sale
$1,395,000
3141 Paul, Santa Cruz, CA 95065
Five offices, dual reception areas, and natural-light interiors support professional office use.
Property Size2,071 SF
Price / SF$673.59
Days on Market4
Property Features for 3141 Paul
General Information
Standard status
Active
Size
2,071 SF
Total Parking Spaces
9
Property subtype
General Commercial
Additional Details
Highway Access
Yes
Office Units
2
Amenities
patio
built-in seating
3
Building Details
Year Built
1972
Tenancy
Multi
Listing Agency:
JR Parrish Inc.
(831) 476-2222
Listed By:
Carol Lezin · License #00878937
(831) 247-2610
Source:
Xome
Added: Aug 31
Changed: Sep 2
Last Checked: Sep 2 at 1:58PM
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 JR Parrish Inc.
Investment Insights
Based on property information with market context.
This 2,071 SF medical office property was built in 1972 and configured for two tenants, with five offices, two reception areas, and two kitchen areas. The layout can also be adapted for single-occupant use. Large windows bring natural light into the interiors, while built-in seating and redwood paneling provide distinctive architectural character. A small outdoor patio extends the usable space.
The property includes nine onsite parking spaces and occupies a quiet corner parcel with visibility. It is adjacent to Dominican Hospital, positioned just off the freeway, and close to shopping and other amenities. The current tenant is scheduled to leave in January 2027.
The property includes nine onsite parking spaces and occupies a quiet corner parcel with visibility. It is adjacent to Dominican Hospital, positioned just off the freeway, and close to shopping and other amenities. The current tenant is scheduled to leave in January 2027.
Key Highlights
- 2,071 SF medical office property built in 1972
- Configured as a two‑tenant property with single‑tenant conversion potential
- Five offices, two reception areas, and two kitchen areas
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
$63,947
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
4.58%
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%
$1,278,940
$1.3M
Cap Rate 7%
$913,529
$913.5K
Cap Rate 9%
$710,522
$710.5K
Market Conditions
NOI Build-Up for 2,071 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
$111.8K $54.00/SF
− Vacancy
−$5.3K −$2.54/SF
EGI
$106.6K $51.46/SF
− OpEx
−$42.6K −$20.58/SF
NOI
$63.9K $30.88/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$54.00 /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%
$1,278,940
Cap Rate 7%
$913,529
Cap Rate 9%
$710,522
Alternative Uses
Best Use
Healthcare Medical
$913.5K
$799.3K – $1.07M
NOI $63,947 @ 7.0% cap · market cap 4.58%
Second Best
Office B
$726.9K
$636.1K – $848.1K
NOI $50,884 @ 7.0% cap · market cap 3.65%
Theoretical Best
Retail
$1.18M
$1.04M – $1.38M
NOI $82,894 @ 7.0% cap · market cap 5.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
11
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95065, CA
8,444
Population
3,090
Households
2.7
Avg Household Size
46
Median Age
50%
College-Educated
96%
High-School Grad
10.9 sq mi
ZIP Area
775
Density / Sq Mi
$142,768
Median Household Income
$52,963
Median Earnings
$2,618
Median Rent
$1,192,200
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?
Medical Office Space - Five offices, dual reception areas, and natural-light interiors support professional office use.
Where is this medical office space located?
The property is located at 3141 Paul Santa Cruz, CA.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: 2,071 SF medical office property built in 1972; Configured as a two‑tenant property with single‑tenant conversion potential; Five offices, two reception areas, and two kitchen areas
