Medical Office
For Sale
Contact for pricing
506 N Patterson St, Valdosta, GA 31601
For-sale medical office building with a stated 9% cap rate.
Property Size6,122 SF
Price / SF$245.02
Days on Market81
Property Features for 506 N Patterson St
General Information
Standard status
Active
Size
6,122 SF
Class
B
Property subtype
Office
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$134,893
Additional Details
Cap Rate
9%
Building Details
Year Built
1984
Year Renovated
2011
Tenancy
Single
Listing Agency:
Marcus & Millichap - Orlando
Listed By:
Christopher Biuso · License #Fl SL3424071
(407) 557-3841
Source:
Crexi
Added: Jun 17
Changed: Aug 25
Last Checked: Sep 5 at 8:08AM
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 Marcus & Millichap - Orlando
Investment Insights
Based on property information with market context.
This for-sale medical office building is presented as an office/healthcare asset totaling 6,122 square feet, with a stated 9% cap rate in the listing remarks.
The property is located at 506 N Patterson St, Valdosta, GA 31601.
The property is located at 506 N Patterson St, Valdosta, GA 31601.
Key Highlights
- Medical office building built in 1984
- 6,122 SF medical/office building
- Stated 9.00% cap rate
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
$53,436
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
3.56%
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%
$1,068,720
$1.1M
Cap Rate 7%
$763,371
$763.4K
Cap Rate 9%
$593,733
$593.7K
Market Conditions
NOI Build-Up for 6,122 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
$99.2K $16.20/SF
− Vacancy
−$10.1K −$1.65/SF
EGI
$89.1K $14.55/SF
− OpEx
−$35.6K −$5.82/SF
NOI
$53.4K $8.73/SF
Area
Lowndes County, GA
Vacancy
10.20%
Lease Rate
$16.20 /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%
$1,068,720
Cap Rate 7%
$763,371
Cap Rate 9%
$593,733
Alternative Uses
Best Use
Healthcare Medical
$763.4K
$668.0K – $890.6K
NOI $53,436 @ 7.0% cap · market cap 3.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$929.4K
$813.3K – $1.08M
NOI $65,060 @ 7.0% cap · market cap 4.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,309
Businesses Nearby
Explore this area
Business Placement
Demographics for 31601, GA
32,331
Population
14,345
Households
2.3
Avg Household Size
33
Median Age
15%
College-Educated
82%
High-School Grad
159.0 sq mi
ZIP Area
203
Density / Sq Mi
$34,846
Median Household Income
$28,878
Median Earnings
$872
Median Rent
$112,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - For-sale medical office building with a stated 9% cap rate.
Where is this medical center located?
The property is located at 506 N Patterson St Valdosta, GA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Medical office building built in 1984; 6,122 SF medical/office building; Stated 9.00% cap rate
