Purpose-Built Dental Medical
For Sale
Contact for pricing
4273 West Circle Drive Northwest, Rochester, MN 55901
The facility is leased under a corporate-guaranteed NN lease with renewal options.
Property Size4,244 SF
Price / SF$615.22
Days on Market14
Property Features for 4273 West Circle Drive Northwest
General Information
Standard status
Active
Size
4,244 SF
Class
A
Property subtype
Retail, Office
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$182,754
Building Details
Year Built
2022
Buildings
1
Units
1
Tenancy
Single
Building Size
4,244 SF
Listing Agency:
Atlantic Capital Partners
(704) 375-7771
Listed By:
David Hoppe · License #NC 288268
Source:
Crexi
Added: Jul 28
Changed: Aug 10
Last Checked: Aug 10 at 7:04AM
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 Atlantic Capital Partners
Investment Insights
Based on property information with market context.
Built in 2022, this 4,244-square-foot medical office property was designed as a dental facility and is occupied by Heartland Dental, LLC. The lease is corporate guaranteed and structured as NN, with approximately 5.3 years remaining in the primary term. Contractual rent increases of 10% every five years apply during the initial term and renewal options are included.
The property is located at 4273 West Circle Drive Northwest in Rochester, Minnesota, along West Circle Drive Northwest (CR 22), which carries approximately 23,800 vehicles per day. Nearby retail and healthcare users include Hy-Vee, Costco, Kwik Trip, Jersey Mike's, Mayo Clinic Laboratories, and other national retailers. Rochester is approximately 85 miles south of Minneapolis and serves as a healthcare and economic center for southeastern Minnesota.
The property is located at 4273 West Circle Drive Northwest in Rochester, Minnesota, along West Circle Drive Northwest (CR 22), which carries approximately 23,800 vehicles per day. Nearby retail and healthcare users include Hy-Vee, Costco, Kwik Trip, Jersey Mike's, Mayo Clinic Laboratories, and other national retailers. Rochester is approximately 85 miles south of Minneapolis and serves as a healthcare and economic center for southeastern Minnesota.
Key Highlights
- 4,244‑square‑foot medical office property built in 2022
- Occupied by Heartland Dental, LLC under a corporate‑guaranteed NN lease
- Approximately 5.3 years remain in the primary lease term
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
$78,206
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
3.00%
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%
$1,564,120
$1.6M
Cap Rate 7%
$1,117,229
$1.1M
Cap Rate 9%
$868,956
$869.0K
Market Conditions
NOI Build-Up for 4,244 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
$114.6K $27.00/SF
− Vacancy
−$10.3K −$2.43/SF
EGI
$104.3K $24.57/SF
− OpEx
−$26.1K −$6.14/SF
NOI
$78.2K $18.43/SF
Area
Rochester, MN
Vacancy
9.00%
Lease Rate
$27.00 /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%
$1,564,120
Cap Rate 7%
$1,117,229
Cap Rate 9%
$868,956
Alternative Uses
Best Use
Office B
$1.12M
$977.6K – $1.30M
NOI $78,206 @ 7.0% cap · market cap 3.00%
Second Best
Healthcare Medical
$754.3K
$660.0K – $880.0K
NOI $52,802 @ 7.0% cap · market cap 2.02%
Theoretical Best
Office A
$1.63M
$1.43M – $1.91M
NOI $114,421 @ 7.0% cap · market cap 4.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
176
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55901, MN
58,046
Population
24,852
Households
2.3
Avg Household Size
36
Median Age
50%
College-Educated
94%
High-School Grad
33.1 sq mi
ZIP Area
1,754
Density / Sq Mi
$90,430
Median Household Income
$52,778
Median Earnings
$1,321
Median Rent
$290,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - The facility is leased under a corporate-guaranteed NN lease with renewal options.
Where is this medical office space located?
The property is located at 4273 West Circle Drive Northwest Rochester, MN.
What is the asking price?
The asking price for this property is $2,611,000.
What are key features of this property?
This property features: 4,244‑square‑foot medical office property built in 2022; Occupied by Heartland Dental, LLC under a corporate‑guaranteed NN lease; Approximately 5.3 years remain in the primary lease term
