Medical Office Building with Hospital
For Sale
Contact for pricing
675 North Broad Street Extension, Grove City, PA 16127
100% occupied medical office anchored by major health systems adjacent to Grove City Hospital.
Property Size11,941 SF
Price / SF$175.45
Days on Market101
Property Features for 675 North Broad Street Extension
General Information
Standard status
Active
Size
11,941 SF
Class
B
Property subtype
Office
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Value Add
Net Operating Income
$174,119
Additional Details
Cap Rate
8.31%
Building Details
Buildings
1
Tenancy
Multi
Listing Agency:
Zeustra Inc
Listed By:
Nick Myers · License #PA RS322215
Source:
Crexi
Added: May 29
Changed: Sep 3
Last Checked: Sep 2 at 4:38PM
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 Zeustra Inc
Investment Insights
Based on property information with market context.
675 N Broad Street Extension is a 11,941-square-foot medical office building presented for sale on a 100% occupied basis. The property is anchored by Independence Health System, which occupies approximately 50% of the building, along with Allegheny Health Network (AHN), which occupies approximately 31%. Ownership is currently in discussions with AHN regarding a lease extension.
The building is strategically located adjacent to Allegheny Health Network’s Grove City Hospital in Grove City, Pennsylvania. This immediate hospital adjacency places the medical office within the local healthcare ecosystem and supports an institutional healthcare tenant mix.
For investors, the asset offers in-place occupancy backed by large healthcare providers and a lease-up profile defined by tenants already operating within the building. The current tenant roster is concentrated with Independence Health System and AHN, and the ongoing discussions with AHN create an opportunity to potentially secure additional lease term. The property is being offered at $2,095,000.
The building is strategically located adjacent to Allegheny Health Network’s Grove City Hospital in Grove City, Pennsylvania. This immediate hospital adjacency places the medical office within the local healthcare ecosystem and supports an institutional healthcare tenant mix.
For investors, the asset offers in-place occupancy backed by large healthcare providers and a lease-up profile defined by tenants already operating within the building. The current tenant roster is concentrated with Independence Health System and AHN, and the ongoing discussions with AHN create an opportunity to potentially secure additional lease term. The property is being offered at $2,095,000.
Key Highlights
- 11,941‑SF medical office investment in Grove City, PA, 100% occupied.
- Adjacent to Allegheny Health Network’s Grove City Hospital.
- Anchored by Independence Health System (~50% of building) and AHN (~31% of space).
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
$184,159
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
8.79%
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%
$3,683,180
$3.7M
Cap Rate 7%
$2,630,843
$2.6M
Cap Rate 9%
$2,046,211
$2.0M
Market Conditions
NOI Build-Up for 11,941 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
$322.4K $27.00/SF
− Vacancy
−$15.5K −$1.30/SF
EGI
$306.9K $25.70/SF
− OpEx
−$122.8K −$10.28/SF
NOI
$184.2K $15.42/SF
Area
Mercer County, PA
Vacancy
4.80%
Lease Rate
$27.00 /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%
$3,683,180
Cap Rate 7%
$2,630,843
Cap Rate 9%
$2,046,211
Alternative Uses
Best Use
Office B
$3.27M
$2.86M – $3.81M
NOI $228,866 @ 7.0% cap · market cap 10.92%
Second Best
Healthcare Medical
$2.63M
$2.30M – $3.07M
NOI $184,159 @ 7.0% cap · market cap 8.79%
Theoretical Best
Office A
$4.21M
$3.68M – $4.91M
NOI $294,562 @ 7.0% cap · market cap 14.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
325
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 16127, PA
15,298
Population
5,731
Households
2.7
Avg Household Size
37
Median Age
37%
College-Educated
94%
High-School Grad
73.2 sq mi
ZIP Area
209
Density / Sq Mi
$69,842
Median Household Income
$27,581
Median Earnings
$863
Median Rent
$199,500
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 100% occupied medical office anchored by major health systems adjacent to Grove City Hospital.
Where is this medical office space located?
The property is located at 675 North Broad Street Extension Grove City, PA.
What is the asking price?
The asking price for this property is $2,095,000.
What are key features of this property?
This property features: 11,941‑SF medical office investment in Grove City, PA, 100% occupied.; Adjacent to Allegheny Health Network’s Grove City Hospital.; Anchored by Independence Health System (~50% of building) and AHN (~31% of space).
