Medical Office Portfolio at Black Hills Medical
For Sale
Contact for pricing
402 BLACK HILLS LN SW OLYMPIA WA 98502-8145, Olympia, WA 98502
Four fully occupied medical office properties offer modified gross leases and individually metered utilities within Black Hills Medical Park.
Property Size33,007 SF
Price / SF$219.65
Days on Market60
Property Features for 402 BLACK HILLS LN SW OLYMPIA WA 98502-8145
General Information
Standard status
Active
Size
33,007 SF
Net Rentable
32,105 SF
Class
C
Property subtype
Office
Zoning
MS
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Stabilized
Net Operating Income
$531,677
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Building Details
Year Built
1985
Buildings
4
Units
21
Tenancy
Multi
Listing Agency:
The Rants Group
Listed By:
Ian Zarosinski · License #139333
(360) 943-8060
Source:
Crexi
Added: Jul 17
Changed: Sep 9
Last Checked: Sep 13 at 7:15AM
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 The Rants Group
Investment Insights
Based on property information with market context.
This offering includes a portfolio of four medical office properties totaling 33,007 square feet, including 32,105 rentable square feet, within Olympia’s established Black Hills Medical Park. The portfolio is fully occupied with modified gross leases, supporting stable in-place tenancy.
Many of the suites are individually metered for electricity and natural gas, with gas service at 405 only. The properties are located adjacent to MultiCare Capital Medical Center and provide convenient access to Highway 101 and I-5, supporting an established healthcare campus environment serving primary care, specialty, and laboratory users.
With flexible suite configurations and a healthcare-focused setting dating to 1985, this portfolio is positioned for long-term occupancy within a dedicated medical office park.
Many of the suites are individually metered for electricity and natural gas, with gas service at 405 only. The properties are located adjacent to MultiCare Capital Medical Center and provide convenient access to Highway 101 and I-5, supporting an established healthcare campus environment serving primary care, specialty, and laboratory users.
With flexible suite configurations and a healthcare-focused setting dating to 1985, this portfolio is positioned for long-term occupancy within a dedicated medical office park.
Key Highlights
- Portfolio of four medical office properties totaling 33,007 SF (32,105 RSF)
- Fully occupied with modified gross leases
- Many suites individually metered for electricity and natural gas (gas at 405 only)
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
$429,910
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
5.93%
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%
$8,598,200
$8.6M
Cap Rate 7%
$6,141,571
$6.1M
Cap Rate 9%
$4,776,778
$4.8M
Market Conditions
NOI Build-Up for 33,007 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
$713.0K $21.60/SF
− Vacancy
−$139.7K −$4.23/SF
EGI
$573.2K $17.37/SF
− OpEx
−$143.3K −$4.34/SF
NOI
$429.9K $13.02/SF
Area
Thurston County, WA
Vacancy
19.60%
Lease Rate
$21.60 /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%
$8,598,200
Cap Rate 7%
$6,141,571
Cap Rate 9%
$4,776,778
Alternative Uses
Best Use
Office B
$6.14M
$5.37M – $7.17M
NOI $429,910 @ 7.0% cap · market cap 5.93%
Second Best
Healthcare Medical
$3.80M
$3.32M – $4.43M
NOI $265,845 @ 7.0% cap · market cap 3.67%
Theoretical Best
Office A
$9.66M
$8.46M – $11.28M
NOI $676,511 @ 7.0% cap · market cap 9.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
887
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 98502, WA
35,698
Population
15,550
Households
2.3
Avg Household Size
41
Median Age
52%
College-Educated
97%
High-School Grad
63.4 sq mi
ZIP Area
563
Density / Sq Mi
$87,154
Median Household Income
$46,404
Median Earnings
$1,569
Median Rent
$496,500
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Four fully occupied medical office properties offer modified gross leases and individually metered utilities within Black Hills Medical Park.
Where is this medical office space located?
The property is located at 402 BLACK HILLS LN SW OLYMPIA WA 98502-8145 Olympia, WA.
What is the asking price?
The asking price for this property is $7,250,000.
What are key features of this property?
This property features: Portfolio of four medical office properties totaling 33,007 SF (32,105 RSF); Fully occupied with modified gross leases; Many suites individually metered for electricity and natural gas (gas at 405 only)
