Single-Tenant Medical
For Sale
Contact for pricing
711 E 38th St, Indianapolis, IN 46205
Freestanding clinic occupied under a long-term NNN lease with scheduled contractual rent increases.
Property Size12,424 SF
Lot Size1.33 Acres
Price / SF$393.50
Days on Market82
Property Features for 711 E 38th St
General Information
Standard status
Active
Size
12,424 SF
Class
A
Lot size
1.33 Acres
Property subtype
Retail, Office
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$330,000
Additional Details
Cap Rate
6.75%
Building Details
Year Built
1993
Year Renovated
2023
Buildings
1
Tenancy
Single
Owner Occupied
No
Abandoned
No
Listing Agency:
Matthews
Listed By:
Kyle Mackulak · License #CA 02055597
Source:
Crexi
Added: Jun 11
Changed: Aug 30
Last Checked: Aug 31 at 10:26AM
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 Matthews
Investment Insights
Based on property information with market context.
This freestanding medical office property contains 12,424 square feet on 1.33 acres and was constructed in 1993. The facility is fully occupied by Oak Street Health MSO, LLC, a wholly owned subsidiary of CVS Health, and operates as a single-tenant healthcare clinic.
The lease has approximately 12.4 years remaining, includes 10% rental increases every five years, and provides two 5-year renewal options. Located at 711 E. 38th Street in Indianapolis, the property is positioned within an established residential corridor with access to major transportation routes and surrounding population density supporting its healthcare-oriented setting.
The lease has approximately 12.4 years remaining, includes 10% rental increases every five years, and provides two 5-year renewal options. Located at 711 E. 38th Street in Indianapolis, the property is positioned within an established residential corridor with access to major transportation routes and surrounding population density supporting its healthcare-oriented setting.
Key Highlights
- 12,424‑square‑foot freestanding medical facility on 1.33 acres
- 100% occupied by Oak Street Health MSO, LLC
- Approximately 12.4 years remaining on the NNN 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
$164,593
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
3.37%
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%
$3,291,860
$3.3M
Cap Rate 7%
$2,351,329
$2.4M
Cap Rate 9%
$1,828,811
$1.8M
Market Conditions
NOI Build-Up for 12,424 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
$298.2K $24.00/SF
− Vacancy
−$23.9K −$1.92/SF
EGI
$274.3K $22.08/SF
− OpEx
−$109.7K −$8.83/SF
NOI
$164.6K $13.25/SF
Area
Indianapolis, IN
Vacancy
8.00%
Lease Rate
$24.00 /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%
$3,291,860
Cap Rate 7%
$2,351,329
Cap Rate 9%
$1,828,811
Alternative Uses
Best Use
Healthcare Medical
$2.35M
$2.06M – $2.74M
NOI $164,593 @ 7.0% cap · market cap 3.37%
Second Best
Office B
$2.34M
$2.05M – $2.73M
NOI $164,034 @ 7.0% cap · market cap 3.36%
Theoretical Best
Office A
$3.09M
$2.71M – $3.61M
NOI $216,476 @ 7.0% cap · market cap 4.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
556
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46205, IN
27,531
Population
14,756
Households
1.9
Avg Household Size
34
Median Age
51%
College-Educated
93%
High-School Grad
6.2 sq mi
ZIP Area
4,440
Density / Sq Mi
$65,756
Median Household Income
$48,138
Median Earnings
$1,087
Median Rent
$278,000
Median Home Value
Market
Vacancy Rate% for Office in Indianapolis, IN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Freestanding clinic occupied under a long-term NNN lease with scheduled contractual rent increases.
Where is this medical office space located?
The property is located at 711 E 38th St Indianapolis, IN.
What is the asking price?
The asking price for this property is $4,888,889.
What are key features of this property?
This property features: 12,424‑square‑foot freestanding medical facility on 1.33 acres; 100% occupied by Oak Street Health MSO, LLC; Approximately 12.4 years remaining on the NNN lease
