Medical Office Investment
For Sale
$6,678,123
4002 Burke Rd, Pasadena, TX 77504
Healthcare-focused building with six tenants and long-term NNN lease commitments supports a stable medical office environment.
Property Size25,444 SF
Days on Market45
Property Features for 4002 Burke Rd
General Information
Standard status
Active
Size
25,444 SF
Property subtype
Commercial
Occupancy
92%
Lease Term
WALT ± 7.3 Years
Net Operating Income
$537,663
Building Details
Building Size
25,444 SF
Year Built
1984
Units
6
Tenancy
Multi
Listing Agency:
Matthews Real Estate Investments Services | New York
(949) 432-4517
Listed By:
Andrew Richmond · License #780040 (TX)
(949) 432-4517
Source:
Matthews
Added: Jul 18
Changed: Aug 30
Last Checked: Aug 31 at 12:43PM
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 Matthews Real Estate Investments Services | New York
Investment Insights
Based on property information with market context.
This medical office property at 4002 Burke Rd in Pasadena, Texas, was built in 1984 and accommodates six healthcare tenants, including pediatrics, OBGYN, pharmacy, and med spa services. Four tenants have operated at the property since 2018. Three tenants are expected to execute new 10-year NNN leases at closing, with 2.5% annual rent escalations. Weighted average lease term exceeds 7 years, while 8% of the building remains available for leasing.
The property is positioned at the intersection of Fairmont Parkway and Burke Road, with exposure to over 20,000 vehicles daily. More than 300,000 residents live within a 5-mile radius. The Pasadena location is also identified with planned 2025 completion of the Pasadena Arena & Convention Center expansion and Orchard Place Subdivision.
The property is positioned at the intersection of Fairmont Parkway and Burke Road, with exposure to over 20,000 vehicles daily. More than 300,000 residents live within a 5-mile radius. The Pasadena location is also identified with planned 2025 completion of the Pasadena Arena & Convention Center expansion and Orchard Place Subdivision.
Key Highlights
- Six healthcare tenants, including pediatrics, OBGYN, pharmacy, and med spa services
- Three tenants to sign new 10‑year NNN leases at closing
- Weighted average lease term exceeds 7 years with 2.5% annual rent escalations
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
$431,044
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
6.45%
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%
$8,620,880
$8.6M
Cap Rate 7%
$6,157,771
$6.2M
Cap Rate 9%
$4,789,378
$4.8M
Market Conditions
NOI Build-Up for 25,444 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
$757.2K $29.76/SF
− Vacancy
−$182.5K −$7.17/SF
EGI
$574.7K $22.59/SF
− OpEx
−$143.7K −$5.65/SF
NOI
$431.0K $16.94/SF
Area
Pasadena, TX
Vacancy
24.10%
Lease Rate
$29.76 /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%
$8,620,880
Cap Rate 7%
$6,157,771
Cap Rate 9%
$4,789,378
Alternative Uses
Best Use
Office B
$6.16M
$5.39M – $7.18M
NOI $431,044 @ 7.0% cap · market cap 6.45%
Second Best
Healthcare Medical
$4.84M
$4.24M – $5.65M
NOI $338,914 @ 7.0% cap · market cap 5.07%
Theoretical Best
Office A
$8.40M
$7.35M – $9.80M
NOI $587,781 @ 7.0% cap · market cap 8.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
92%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
689
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77504, TX
25,728
Population
10,080
Households
2.6
Avg Household Size
33
Median Age
17%
College-Educated
79%
High-School Grad
5.6 sq mi
ZIP Area
4,594
Density / Sq Mi
$52,784
Median Household Income
$35,789
Median Earnings
$1,196
Median Rent
$207,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Meyer Anthony C DVM — 4307 Terlingua St, Pasadena, TX 77504
Frequently Asked Questions
What type of property is this?
Medical Office Space - Healthcare-focused building with six tenants and long-term NNN lease commitments supports a stable medical office environment.
Where is this medical office space located?
The property is located at 4002 Burke Rd Pasadena, TX.
What is the asking price?
The asking price for this property is $6,678,123.
What are key features of this property?
This property features: Six healthcare tenants, including pediatrics, OBGYN, pharmacy, and med spa services; Three tenants to sign new 10‑year NNN leases at closing; Weighted average lease term exceeds 7 years with 2.5% annual rent escalations
