DaVita Absolute NNN
New
For Sale
$2,200,000
5240 W Lowell Ave, Spokane, WA 99208
Corporate-signed healthcare tenancy under an absolute NNN lease with no landlord responsibilities.
Property Size10,215 SF
Days on Market2
Property Features for 5240 W Lowell Ave
General Information
Standard status
Active
Size
10,215 SF
Property subtype
Retail
Zoning
CC-2 - Community Commercial
Building Details
Building Size
10,215 SF
Year Built
2020
Tenancy
Single
Listed By:
Jeff Gates
(415) 602-6339
Source:
Srsre
Added: Sep 6
Last Checked: Sep 7 at 4:30AM
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 Jeff Gates
Investment Insights
Based on property information with market context.
This 2020 healthcare property in Spokane is offered as a leasehold interest representing building ownership. The asset is occupied by DaVita under an absolute NNN lease that places CAM, taxes, insurance, and premises maintenance obligations with the tenant. Total Renal Care, Inc. is the corporate lease signatory, and the initial term has more than 9 years remaining, followed by three 5-year extension options. Contractual rent increases include 10% in February 2031 and 10% at the start of each option period.
The property is located at 5240 W Lowell Ave within Sundance Plaza, a 134,000 square foot shopping center anchored by Safeway, Ace Hardware, and McDonald’s. N Indian Trail Rd carries an average of 17,300 vehicles daily. Additional nearby retail centers include Northpointe Plaza, measuring 456,000 square feet, and Franklin Park, measuring 296,000 square feet. The property is zoned CC-2 - Community Commercial.
The property is located at 5240 W Lowell Ave within Sundance Plaza, a 134,000 square foot shopping center anchored by Safeway, Ace Hardware, and McDonald’s. N Indian Trail Rd carries an average of 17,300 vehicles daily. Additional nearby retail centers include Northpointe Plaza, measuring 456,000 square feet, and Franklin Park, measuring 296,000 square feet. The property is zoned CC-2 - Community Commercial.
Key Highlights
- Absolute NNN lease with no landlord responsibilities
- Corporate lease signed by Total Renal Care, Inc.
- More than 9 years remaining on the initial lease
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
$131,945
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
6.00%
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%
$2,638,900
$2.6M
Cap Rate 7%
$1,884,929
$1.9M
Cap Rate 9%
$1,466,056
$1.5M
Market Conditions
NOI Build-Up for 10,215 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
$239.0K $23.40/SF
− Vacancy
−$19.1K −$1.87/SF
EGI
$219.9K $21.53/SF
− OpEx
−$88.0K −$8.61/SF
NOI
$131.9K $12.92/SF
Area
Spokane, WA
Vacancy
8.00%
Lease Rate
$23.40 /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%
$2,638,900
Cap Rate 7%
$1,884,929
Cap Rate 9%
$1,466,056
Alternative Uses
Best Use
Healthcare Medical
$1.88M
$1.65M – $2.20M
NOI $131,945 @ 7.0% cap · market cap 6.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.64M
$2.31M – $3.07M
NOI $184,483 @ 7.0% cap · market cap 8.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
156
Businesses Nearby
Explore this area
Business Placement
Demographics for 99208, WA
58,531
Population
24,273
Households
2.4
Avg Household Size
39
Median Age
34%
College-Educated
95%
High-School Grad
48.7 sq mi
ZIP Area
1,202
Density / Sq Mi
$81,084
Median Household Income
$45,733
Median Earnings
$1,226
Median Rent
$414,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Corporate-signed healthcare tenancy under an absolute NNN lease with no landlord responsibilities.
Where is this nnn property located?
The property is located at 5240 W Lowell Ave Spokane, WA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Absolute NNN lease with no landlord responsibilities; Corporate lease signed by Total Renal Care, Inc.; More than 9 years remaining on the initial lease
