Built-Out Family Medicine
For Sale
Contact for pricing
504 N 40th Ave, Yakima, WA 98908
A fully sprinklered medical building with 27 exam rooms and 70 designated parking spaces, currently leased through March 2027.
Property Size13,762 SF
Lot Size1.31 Acres
Price / SF$203.46
Days on Market984
Property Features for 504 N 40th Ave
General Information
Standard status
Active
Size
13,762 SF
Total Parking Spaces
70
Lot size
1.31 Acres
Property subtype
OFFICE
Zoning
B-1
Additional Details
Sprinkler System
Yes
Building Details
Tenancy
Single
Listing Agency:
Keller Williams Yakima Valley
(509) 966-1020
Listed By:
Russell Roberts, CCIM
(509) 594-7989
Source:
Moodyscre
Added: Jan 3, 2024
Changed: Sep 12
Last Checked: Sep 12 at 11:18AM
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 Keller Williams Yakima Valley
Investment Insights
Based on property information with market context.
This built-out family medicine facility includes 18,591 total square feet across finished ground floor and basement space, plus additional unfinished basement area. The healthcare layout features 27 exam rooms, a private lab, 2 procedure rooms, and multiple private offices, along with a breakroom, conference room, and gym. Building infrastructure includes a metal roof and a fully sprinkled interior, with reserved space for a future basement elevator.
The property sits on 1.31 acres and is zoned B-1, which allows for multiple uses. It provides 70 designated parking spaces and is located on Yakima’s North 40th, described as the 2nd most travel street in Yakima.
The building is currently leased to MultiCare Hospital through March 2027.
The property sits on 1.31 acres and is zoned B-1, which allows for multiple uses. It provides 70 designated parking spaces and is located on Yakima’s North 40th, described as the 2nd most travel street in Yakima.
The building is currently leased to MultiCare Hospital through March 2027.
Key Highlights
- 18,591 SF medical facility leased to MultiCare Hospital through March 2027
- Built‑out Family Medicine space with 27 exam rooms plus private lab and 2 procedure rooms
- Includes 12,083 SF finished ground floor and 2,730 SF finished basement (plus 3,778 SF unfinished basement)
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
$146,724
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
5.24%
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%
$2,934,480
$2.9M
Cap Rate 7%
$2,096,057
$2.1M
Cap Rate 9%
$1,630,267
$1.6M
Market Conditions
NOI Build-Up for 13,762 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
$262.6K $19.08/SF
− Vacancy
−$18.0K −$1.31/SF
EGI
$244.5K $17.77/SF
− OpEx
−$97.8K −$7.11/SF
NOI
$146.7K $10.66/SF
Area
Yakima County, WA
Vacancy
6.87%
Lease Rate
$19.08 /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%
$2,934,480
Cap Rate 7%
$2,096,057
Cap Rate 9%
$1,630,267
Alternative Uses
Best Use
Healthcare Medical
$2.10M
$1.83M – $2.45M
NOI $146,724 @ 7.0% cap · market cap 5.24%
Second Best
Office B
$2.09M
$1.83M – $2.44M
NOI $146,493 @ 7.0% cap · market cap 5.23%
Theoretical Best
Office A
$2.79M
$2.45M – $3.26M
NOI $195,632 @ 7.0% cap · market cap 6.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
671
Businesses Nearby
Explore this area
Business Placement
Demographics for 98908, WA
38,205
Population
15,496
Households
2.5
Avg Household Size
42
Median Age
33%
College-Educated
91%
High-School Grad
105.7 sq mi
ZIP Area
361
Density / Sq Mi
$80,266
Median Household Income
$43,789
Median Earnings
$1,302
Median Rent
$356,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Medical center - A fully sprinklered medical building with 27 exam rooms and 70 designated parking spaces, currently leased through March 2027.
Where is this medical center located?
The property is located at 504 N 40th Ave Yakima, WA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 18,591 SF medical facility leased to MultiCare Hospital through March 2027; Built‑out Family Medicine space with 27 exam rooms plus private lab and 2 procedure rooms; Includes 12,083 SF finished ground floor and 2,730 SF finished basement (plus 3,778 SF unfinished basement)
