Licensed Medical Center with Surgery
For Sale
$9,500,000
77 S DOBSON Road, Chandler, AZ 85224
Configured for surgical and clinical operations with recovery, exam, and reception areas.
Property Size17,492 SF
Price / SF$543.11
Days on Market48
Property Features for 77 S DOBSON Road
General Information
Standard status
Active
Size
17,492 SF
Property subtype
Comm/industry Sale
Additional Details
Business Included
Yes
Office Units
2
Listing Agency:
Realty ONE Group
(623) 236-1414
Listed By:
Jason Miszuk · License #SA562932000
(602) 363-5058
Source:
Juliebradfeldt
Added: Jul 30
Changed: Sep 8
Last Checked: Sep 14 at 12:57PM
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 Realty ONE Group
Investment Insights
Based on property information with market context.
This 2014 medical center includes an in-place ASC license and a configured surgical and clinical environment. The property is divided into two suites: Suite 1 offers approximately 9,684 square feet of second-generation medical office space, while Suite 2 contains an approximately 7,808-square-foot built-out ASC surgery center with cath labs.
The facility includes two Class C operating rooms, a large waiting area, reception, break room, multiple private exam rooms, a post-operation recovery room, and a backup generator. Located at 77 S Dobson Road in Chandler, the property is less than one mile from Chandler Regional Hospital and near Banner Ocotillo Hospital. Possible leasing of half the property is also noted, including a potential five-year leaseback of Suite 1.
The facility includes two Class C operating rooms, a large waiting area, reception, break room, multiple private exam rooms, a post-operation recovery room, and a backup generator. Located at 77 S Dobson Road in Chandler, the property is less than one mile from Chandler Regional Hospital and near Banner Ocotillo Hospital. Possible leasing of half the property is also noted, including a potential five-year leaseback of Suite 1.
Key Highlights
- In‑place ASC license for a configured surgical center
- Two suites totaling approximately 17,492 square feet
- Suite 2 includes an approximately 7,808‑square‑foot ASC surgery center with cath labs
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
$275,345
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
2.90%
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%
$5,506,900
$5.5M
Cap Rate 7%
$3,933,500
$3.9M
Cap Rate 9%
$3,059,389
$3.1M
Market Conditions
NOI Build-Up for 17,492 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
$455.5K $26.04/SF
− Vacancy
−$88.4K −$5.05/SF
EGI
$367.1K $20.99/SF
− OpEx
−$91.8K −$5.25/SF
NOI
$275.3K $15.74/SF
Area
Chandler, AZ
Vacancy
19.40%
Lease Rate
$26.04 /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%
$5,506,900
Cap Rate 7%
$3,933,500
Cap Rate 9%
$3,059,389
Alternative Uses
Best Use
Office B
$3.93M
$3.44M – $4.59M
NOI $275,345 @ 7.0% cap · market cap 2.90%
Second Best
Healthcare Medical
$3.20M
$2.80M – $3.74M
NOI $224,177 @ 7.0% cap · market cap 2.36%
Theoretical Best
Office A
$5.01M
$4.39M – $5.85M
NOI $350,959 @ 7.0% cap · market cap 3.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Office units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
2,403
Businesses Nearby
Explore this area
Business Placement
Demographics for 85224, AZ
46,919
Population
21,559
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
94%
High-School Grad
9.4 sq mi
ZIP Area
4,991
Density / Sq Mi
$90,886
Median Household Income
$53,408
Median Earnings
$1,785
Median Rent
$391,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Medical center - Configured for surgical and clinical operations with recovery, exam, and reception areas.
Where is this medical center located?
The property is located at 77 S DOBSON Road Chandler, AZ.
What is the asking price?
The asking price for this property is $9,500,000.
What are key features of this property?
This property features: In‑place ASC license for a configured surgical center; Two suites totaling approximately 17,492 square feet; Suite 2 includes an approximately 7,808‑square‑foot ASC surgery center with cath labs
