Medical Office Condominium Surgery
For Sale
$2,621,464
604 W Warner Rd Bldg D, Chandler, AZ 85225
Professionally managed medical office condo offering an existing surgery center within a dedicated medical condominium project.
Property Size7,816 SF
Price / SF$260.07
Days on Market72
Property Features for 604 W Warner Rd Bldg D
General Information
Standard status
Active
Size
7,816 SF
Class
B
Property subtype
Office
Additional Details
Business Included
Yes
Building Details
Building Size
7,816 SF
Year Built
1987
Listing Agency:
Commercial Properties Inc
Listed By:
Tyson Breinholt · License #BR517298000
(602) 315-7131
Source:
Cpiaz
Added: Jun 25
Changed: Sep 4
Last Checked: Aug 3 at 5:59AM
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 Commercial Properties Inc
Investment Insights
Based on property information with market context.
Warner Medical Park is an in-fill medical office condominium project, offered for sale with an existing surgery center. The total building size is approximately 10,080 square feet. Ownership includes participation in a professionally managed owners’ association.
The building is positioned between Banner Desert Medical Center, Cardon Children’s Medical Center, and Dignity Health Chandler & Gilbert Regional Medical Center. Monthly association dues are currently $2,418, and 2025 property taxes are listed at $16,160.26.
This offering is well suited for healthcare operators seeking a condominium structure within an established medical office community, with an existing surgery center in place. Prospective buyers should review the condominium association terms and ongoing dues, along with the stated property tax obligation for budgeting, as part of evaluating fit for their practice or affiliated organization.
The building is positioned between Banner Desert Medical Center, Cardon Children’s Medical Center, and Dignity Health Chandler & Gilbert Regional Medical Center. Monthly association dues are currently $2,418, and 2025 property taxes are listed at $16,160.26.
This offering is well suited for healthcare operators seeking a condominium structure within an established medical office community, with an existing surgery center in place. Prospective buyers should review the condominium association terms and ongoing dues, along with the stated property tax obligation for budgeting, as part of evaluating fit for their practice or affiliated organization.
Key Highlights
- Warner Medical Park is a medical office condominium project built in 1987
- Total building size: +/-10,080 SF
- Existing surgery center available for sale within the medical condominium project
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
$158,671
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
6.05%
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%
$3,173,420
$3.2M
Cap Rate 7%
$2,266,729
$2.3M
Cap Rate 9%
$1,763,011
$1.8M
Market Conditions
NOI Build-Up for 10,080 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
$262.5K $26.04/SF
− Vacancy
−$50.9K −$5.05/SF
EGI
$211.6K $20.99/SF
− OpEx
−$52.9K −$5.25/SF
NOI
$158.7K $15.74/SF
Area
Chandler, AZ
Vacancy
19.40%
Lease Rate
$26.04 /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%
$3,173,420
Cap Rate 7%
$2,266,729
Cap Rate 9%
$1,763,011
Alternative Uses
Best Use
Office B
$2.27M
$1.98M – $2.64M
NOI $158,671 @ 7.0% cap · market cap 6.05%
Second Best
Healthcare Medical
$1.85M
$1.61M – $2.15M
NOI $129,185 @ 7.0% cap · market cap 4.93%
Theoretical Best
Office A
$2.89M
$2.53M – $3.37M
NOI $202,245 @ 7.0% cap · market cap 7.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,018
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85225, AZ
73,551
Population
28,930
Households
2.5
Avg Household Size
35
Median Age
33%
College-Educated
88%
High-School Grad
12.7 sq mi
ZIP Area
5,791
Density / Sq Mi
$86,036
Median Household Income
$45,692
Median Earnings
$1,662
Median Rent
$386,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Professionally managed medical office condo offering an existing surgery center within a dedicated medical condominium project.
Where is this medical office space located?
The property is located at 604 W Warner Rd Bldg D Chandler, AZ.
What is the asking price?
The asking price for this property is $2,621,464.
What are key features of this property?
This property features: Warner Medical Park is a medical office condominium project built in 1987; Total building size: +/-10,080 SF; Existing surgery center available for sale within the medical condominium project
