South Waterfront Mixed-Use
For Sale
$1,500,000
3906 S KELLY, Portland, OR 97239
Versatile mixed-use building in South Waterfront near OHSU.
Property Size3,186 SF
Price / SF$470.81
Days on Market460
Property Features for 3906 S KELLY
General Information
Standard status
Active
Size
3,186 SF
Taxes and HOA fees
Annual Taxes
$16,130
Building Details
Year Built
1908
Listing Agency:
EARNEST REAL ESTATE
Listed By:
BETH EARNEST
Source:
Corcoran
Added: Jun 2, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 EARNEST REAL ESTATE
Investment Insights
Based on property information with market context.
Located in the South Waterfront area near the OHSU Plaza and OHSU Center for Health & Healing I & II, the original Kelly House is a commercial/office residential mixed-use building featuring notable architecture and versatile spaces. The property has been meticulously maintained and restored. Potential uses include medical offices, counseling and mental health services, spa and massage therapy, acupuncture, educational classrooms, and student housing. The property features a wraparound porch, balconies, Mt Hood views, and architectural details. The Classic Portland Craftsman architecture is highlighted by woodwork and trim, built-ins, fireplaces, hardwood and wood floors, spacious rooms with high ceilings, crown moldings, and tin ceilings. A full, dry basement with higher ceilings provides additional spaces for development. The property size is 3186 square feet. The lot, approximately 100x100, includes a paved section with 10 off-street parking spaces. There is potential for renting to food carts.
Key Highlights
- Prime South Waterfront location near OHSU Plaza and OHSU Center for Health & Healing I & II.
- Versatile Commercial/Office Residential mixed‑use building with multifaceted potential uses (medical, counseling, spa, education, housing).
- Meticulously maintained and restored original Kelly House with stunning architecture.
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
$46,429
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
3.10%
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%
$928,580
$928.6K
Cap Rate 7%
$663,271
$663.3K
Cap Rate 9%
$515,878
$515.9K
Market Conditions
NOI Build-Up for 3,186 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
$84.1K $26.40/SF
− Vacancy
−$6.7K −$2.11/SF
EGI
$77.4K $24.29/SF
− OpEx
−$31.0K −$9.72/SF
NOI
$46.4K $14.57/SF
Area
Portland, OR
Vacancy
8.00%
Lease Rate
$26.40 /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%
$928,580
Cap Rate 7%
$663,271
Cap Rate 9%
$515,878
Alternative Uses
Best Use
Healthcare Medical
$663.3K
$580.4K – $773.8K
NOI $46,429 @ 7.0% cap · market cap 3.10%
Second Best
Mixed Use
$614.4K
$537.6K – $716.9K
NOI $43,011 @ 7.0% cap · market cap 2.87%
Theoretical Best
Office A
$894.7K
$782.9K – $1.04M
NOI $62,630 @ 7.0% cap · market cap 4.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,483
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97239, OR
18,323
Population
9,963
Households
1.8
Avg Household Size
39
Median Age
74%
College-Educated
99%
High-School Grad
3.6 sq mi
ZIP Area
5,090
Density / Sq Mi
$108,795
Median Household Income
$67,384
Median Earnings
$1,749
Median Rent
$713,100
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Versatile mixed-use building in South Waterfront near OHSU.
Where is this medical office space located?
The property is located at 3906 S KELLY Portland, OR.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Prime South Waterfront location near OHSU Plaza and OHSU Center for Health & Healing I & II.; Versatile Commercial/Office Residential mixed‑use building with multifaceted potential uses (medical, counseling, spa, education, housing).; Meticulously maintained and restored original Kelly House with stunning architecture.
