Medical Facility in
For Sale
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504 N 40th Ave, Yakima, WA 98908
Prime medical office building in Yakima's North 40th Avenue district.
Property Size13,762 SF
Lot Size1.31 Acres
Price / SF$210.73
Days on Market956
Property Features for 504 N 40th Ave
General Information
Standard status
Active
Size
13,762 SF
Class
A
Lot size
1.31 Acres
Property subtype
Office
Zoning
B1
Building Details
Year Built
1993
Listing Agency:
KW Commercial Yakima Valley
(509) 594-7989
Listed By:
Russ Roberts · License #WA 26317
Source:
Crexi
Added: Jan 4, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:22AM
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 KW Commercial Yakima Valley
Investment Insights
Based on property information with market context.
Located in Yakima's North 40th Avenue district, the Family Medicine of Yakima Building presents an investment opportunity. Constructed in 1993, this free-standing medical facility features 12,083 square feet of finished ground floor space, 2,730 square feet of finished basement space, and 3,778 square feet of unfinished basement space. The building's exterior includes rock trim. The property is situated on a 1.31-acre commercially zoned lot with 70 parking spaces. Inside, there are 27 exam rooms, a private lab, 2 procedure rooms, 7 private offices, a breakroom, a conference room, and a gym. The building is fully sprinkled and has a metal roof. The design includes a reserved area for a future elevator to access the basement. The total area is 18,591 square feet. The property is located 40 blocks west of Yakima's central core area. MultiCare Hospital has a lease through 2025.
Key Highlights
- Lease in place with MultiCare Hospital through 2025 provides immediate income.
- Large commercially zoned lot (1.31 acres) with ample parking (70 spaces).
- Extensive finished space (12,083 sq ft ground floor, 2,730 sq ft basement) plus unfinished basement (3,778 sq ft) totaling 18,591 sq ft.
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
5.06%
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 5.06%
Second Best
Office B
$2.09M
$1.83M – $2.44M
NOI $146,493 @ 7.0% cap · market cap 5.05%
Theoretical Best
Office A
$2.79M
$2.45M – $3.26M
NOI $195,632 @ 7.0% cap · market cap 6.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
482
Businesses Nearby
Under-served
Demand for This Use
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
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Prime medical office building in Yakima's North 40th Avenue district.
Where is this medical office space located?
The property is located at 504 N 40th Ave Yakima, WA.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Lease in place with MultiCare Hospital through 2025 provides immediate income.; Large commercially zoned lot (1.31 acres) with ample parking (70 spaces).; Extensive finished space (12,083 sq ft ground floor, 2,730 sq ft basement) plus unfinished basement (3,778 sq ft) totaling 18,591 sq ft.
