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721 River Dr, Fort Bragg, CA 95437
Medical Office Space
Property Size12,147 SF
Lot Size0.98 Acres
Price / SF$326.01
Days on Market765
Property Features for 721 River Dr
General Information
Standard status
Active
Size
12,147 SF
Class
B
Total Parking Spaces
64
Lot size
0.98 Acres
Property subtype
Office
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$336,609
Building Details
Year Built
2005
Year Renovated
2025
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Chicago Downtown
(312) 787-0666
Listed By:
Scott Barrow · License #CA 02181418
Source:
Crexi
Added: Jul 29, 2024
Changed: Aug 21
Last Checked: Sep 1 at 2:53AM
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 Marcus & Millichap - Chicago Downtown
Investment Insights
Based on property information with market context.
Key Highlights
- 100% occupied by Adventist Health (S&P credit rating A-).
- Triple‑net lease structure with CPI (2%-5%) increase every two years.
- Four, five‑year renewal options remaining.
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
$270,142
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
6.82%
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%
$5,402,840
$5.4M
Cap Rate 7%
$3,859,171
$3.9M
Cap Rate 9%
$3,001,578
$3.0M
Market Conditions
NOI Build-Up for 12,147 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
$524.8K $43.20/SF
− Vacancy
−$74.5K −$6.13/SF
EGI
$450.2K $37.07/SF
− OpEx
−$180.1K −$14.83/SF
NOI
$270.1K $22.24/SF
Area
Mendocino County, CA
Vacancy
14.20%
Lease Rate
$43.20 /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%
$5,402,840
Cap Rate 7%
$3,859,171
Cap Rate 9%
$3,001,578
Alternative Uses
Best Use
Healthcare Medical
$3.86M
$3.38M – $4.50M
NOI $270,142 @ 7.0% cap · market cap 6.82%
Second Best
Office B
$2.52M
$2.20M – $2.94M
NOI $176,342 @ 7.0% cap · market cap 4.45%
Theoretical Best
Flex RnD
$4.54M
$3.97M – $5.30M
NOI $317,894 @ 7.0% cap · market cap 8.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
571
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95437, CA
14,608
Population
7,654
Households
1.9
Avg Household Size
48
Median Age
26%
College-Educated
86%
High-School Grad
177.4 sq mi
ZIP Area
82
Density / Sq Mi
$55,061
Median Household Income
$35,860
Median Earnings
$1,367
Median Rent
$541,400
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.
Frequently Asked Questions
Where is this medical office space located?
The property is located at 721 River Dr Fort Bragg, CA.
What is the asking price?
The asking price for this property is $3,960,000.
What are key features of this property?
This property features: 100% occupied by Adventist Health (S&P credit rating A-).; Triple‑net lease structure with CPI (2%-5%) increase every two years.; Four, five‑year renewal options remaining.
