Freeway-Visible Medical Building For
For Sale
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7051 Alvarado Rd, La Mesa, CA 91942
Two-story, 10,000 SF medical building with freeway visibility.
Property Size10,000 SF
Price / SF$695
Days on Market1021
Property Features for 7051 Alvarado Rd
General Information
Standard status
Active
Size
10,000 SF
Class
B
Property subtype
Office
Zoning
CM-F-D
Lease Type
NNN
Investment Type
Owner/User
Building Details
Buildings
1
Stories
2
Units
3
Tenancy
Multi
Listing Agency:
COLDWELL BANKER COMMERCIAL WEST
Listed By:
Jeff Kane · License #CA
Source:
Crexi
Added: Nov 15, 2023
Changed: Aug 23
Last Checked: Aug 31 at 6:23PM
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 COLDWELL BANKER COMMERCIAL WEST
Investment Insights
Based on property information with market context.
This two-story, 10,000 square foot medical building is located in La Mesa, California, with high visibility on Interstate 8 at the 70th Street on-ramp. The property is suitable for an owner-user or investor. Approximately 170,000 vehicles pass by the building daily, offering significant exposure. The building includes an elevator. The surrounding area offers convenient access to restaurants and businesses. The location is also near San Diego State University and other medical facilities. On-site parking is available, with a total of 45 spaces. Freeway signage provides additional business visibility. 2,500 square feet of the bottom floor is currently leased to a surgical center. The seller currently occupies the entire second floor and could vacate for an owner/user, create a new lease and remain for an investor, or downsize to the smaller 2,500 square foot space on the first floor, depending on the buyer’s needs.
Key Highlights
- High Visibility Location: Situated on Interstate 8 at the 70th Street on‑ramp, offering exceptional exposure to approximately 170,000 vehicles daily.
- Income Potential: 2,500 sq ft of the bottom floor is currently leased to a surgical center, providing immediate income.
- Flexible Occupancy: Seller options include vacating for owner/user, creating a new lease for an investor, or downsizing to a smaller space on the 1st floor.
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
$231,390
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
3.33%
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%
$4,627,800
$4.6M
Cap Rate 7%
$3,305,571
$3.3M
Cap Rate 9%
$2,571,000
$2.6M
Market Conditions
NOI Build-Up for 10,000 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
$360.0K $36.00/SF
− Vacancy
−$51.5K −$5.15/SF
EGI
$308.5K $30.85/SF
− OpEx
−$77.1K −$7.71/SF
NOI
$231.4K $23.14/SF
Area
San Diego County, CA
Vacancy
14.30%
Lease Rate
$36.00 /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%
$4,627,800
Cap Rate 7%
$3,305,571
Cap Rate 9%
$2,571,000
Alternative Uses
Best Use
Office B
$3.31M
$2.89M – $3.86M
NOI $231,390 @ 7.0% cap · market cap 3.33%
Second Best
Healthcare Medical
$2.70M
$2.36M – $3.14M
NOI $188,698 @ 7.0% cap · market cap 2.72%
Theoretical Best
Office A
$4.58M
$4.01M – $5.35M
NOI $320,717 @ 7.0% cap · market cap 4.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,558
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 91942, CA
40,813
Population
18,488
Households
2.2
Avg Household Size
39
Median Age
38%
College-Educated
94%
High-School Grad
5.8 sq mi
ZIP Area
7,037
Density / Sq Mi
$81,262
Median Household Income
$57,064
Median Earnings
$1,934
Median Rent
$689,300
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.
Similar Off Market Nearby
- Lake Murray Village Vet Clinic — 5644 Lake Murray Blvd, La Mesa, CA 91942
- Dr. Brian J. Golden, D.V.M — 5644 Lake Murray Blvd, La Mesa, CA 91942
Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-story, 10,000 SF medical building with freeway visibility.
Where is this medical office space located?
The property is located at 7051 Alvarado Rd La Mesa, CA.
What is the asking price?
The asking price for this property is $6,950,000.
What are key features of this property?
This property features: High Visibility Location: Situated on Interstate 8 at the 70th Street on‑ramp, offering exceptional exposure to approximately 170,000 vehicles daily.; Income Potential: 2,500 sq ft of the bottom floor is currently leased to a surgical center, providing immediate income.; Flexible Occupancy: Seller options include vacating for owner/user, creating a new lease for an investor, or downsizing to a smaller space on the 1st floor.
