NN Medical Office
For Sale
$3,265,000
7041 Lee Park Rd, Mechanicsville, VA 23111
Occupied primary care facility with four years remaining on an NN lease and annual rent escalations.
Property Size11,224 SF
Days on Market151
Property Features for 7041 Lee Park Rd
General Information
Standard status
Active
Size
11,224 SF
Class
B
Property subtype
Office
Building Details
Building Size
11,224 SF
Year Built
1980
Listing Agency:
Franklin Street | Charlotte
(704) 228-1116
Listed By:
Paul Timmons · License #NC #332021
Source:
Franklinst
Added: Apr 1
Changed: Aug 29
Last Checked: Aug 29 at 1:20PM
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 Franklin Street | Charlotte
Investment Insights
Based on property information with market context.
Located at 7041 Lee Park Rd in Mechanicsville, Virginia, this occupied medical office property contains 11,224 square feet on a 1.48-acre parcel. Constructed in 1980, the building has served as a primary care location for more than 40 years and is leased under a Double Net structure. The landlord remains responsible for the roof and structural components.
The current lease has four years remaining and includes 3.00% annual rent escalations. Bon Secours is the tenant and carries an A1 Moody’s credit rating. The property is positioned within a five-mile area containing 82,203 residents and an average household income of $103,474. Its acreage and building footprint also provide a defined physical base for future repositioning or redevelopment considerations.
The current lease has four years remaining and includes 3.00% annual rent escalations. Bon Secours is the tenant and carries an A1 Moody’s credit rating. The property is positioned within a five-mile area containing 82,203 residents and an average household income of $103,474. Its acreage and building footprint also provide a defined physical base for future repositioning or redevelopment considerations.
Key Highlights
- 11,224 SF medical office building on a 1.48‑acre parcel
- Double Net lease with four years remaining on the current term
- 3.00% annual rent escalations
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
$209,012
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
6.40%
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%
$4,180,240
$4.2M
Cap Rate 7%
$2,985,886
$3.0M
Cap Rate 9%
$2,322,356
$2.3M
Market Conditions
NOI Build-Up for 11,224 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
$325.9K $29.04/SF
− Vacancy
−$47.3K −$4.21/SF
EGI
$278.7K $24.83/SF
− OpEx
−$69.7K −$6.21/SF
NOI
$209.0K $18.62/SF
Area
Hanover County, VA
Vacancy
14.50%
Lease Rate
$29.04 /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%
$4,180,240
Cap Rate 7%
$2,985,886
Cap Rate 9%
$2,322,356
Alternative Uses
Best Use
Office B
$2.99M
$2.61M – $3.48M
NOI $209,012 @ 7.0% cap · market cap 6.40%
Second Best
Healthcare Medical
$2.05M
$1.79M – $2.39M
NOI $143,200 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$3.38M
$2.96M – $3.94M
NOI $236,570 @ 7.0% cap · market cap 7.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
493
Businesses Nearby
Explore this area
Business Placement
Demographics for 23111, VA
38,151
Population
15,773
Households
2.4
Avg Household Size
43
Median Age
34%
College-Educated
95%
High-School Grad
77.2 sq mi
ZIP Area
494
Density / Sq Mi
$96,736
Median Household Income
$52,106
Median Earnings
$1,558
Median Rent
$324,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Occupied primary care facility with four years remaining on an NN lease and annual rent escalations.
Where is this nnn property located?
The property is located at 7041 Lee Park Rd Mechanicsville, VA.
What is the asking price?
The asking price for this property is $3,265,000.
What are key features of this property?
This property features: 11,224 SF medical office building on a 1.48‑acre parcel; Double Net lease with four years remaining on the current term; 3.00% annual rent escalations
