Delaware Outpatient Surgery Center
For Sale
Contact for pricing
774 Christiana Rd, Newark, DE 19713
Medical facility with long-term lease and annual CPI rental increases.
Property Size14,087 SF
Price / SF$463.48
Days on Market182
Property Features for 774 Christiana Rd
General Information
Standard status
Active
Size
14,087 SF
Property subtype
Office, Retail, Special Purpose
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$457,000
Building Details
Year Built
2005
Year Renovated
2026
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
CBRE - Philadelphia Suburban
(484) 567-2340
Listed By:
Matthew Gorman · License #PA RS287470
Source:
Crexi
Added: Feb 11
Changed: Aug 8
Last Checked: Aug 8 at 2:36PM
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 CBRE - Philadelphia Suburban
Investment Insights
Based on property information with market context.
The property is a multi-specialty medical facility occupied by Delaware Outpatient Surgery Center (DOCS), located within the Neuroscience & Surgery Institute on Christiana Road in Newark, Delaware. DOCS is part of the Surgery Partners network, which includes over 4,600 affiliated physicians across more than 200 locations nationwide, serving over 600,000 patients annually. The center is home to more than 50 board-certified physicians and is known for its medical technology and patient care. The tenant has extended its lease for 10 years with two 5-year renewal options. The lease is corporately guaranteed by Minimally Invasive Surgical and Neuroscience Center, LLC, a subsidiary of Surgery Partners, Inc. The NNN lease includes annual CPI rental increases, capped at 3% per year. The tenant will undergo $600,000 in renovations to transform the facility into a surgical center. The property is located in a region with access to major highways and high traffic counts of 48,940 VPD on Christiana Road, near ChristianaCare healthcare campuses, Bank of America Corporate Campus, and the University of Delaware. The surrounding medical tenants include ChristianaCare, Pivot Physical Therapy, and Delaware Neurosurgical Group. The property is located in a densely populated area with over 199,000 people living within 5 miles and an average household income over $109,000. The property size is 14,087 square feet.
Key Highlights
- Long‑term tenancy with a newly extended 10‑year lease and two 5‑year renewal options.
- Corporately guaranteed NNN lease by Minimally Invasive Surgical and Neuroscience Center, LLC, a subsidiary of Surgery Partners, Inc. (NASDAQ: SGRY).
- Annual CPI rental increases, capped at 3% per year.
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
$203,233
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
3.11%
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%
$4,064,660
$4.1M
Cap Rate 7%
$2,903,329
$2.9M
Cap Rate 9%
$2,258,144
$2.3M
Market Conditions
NOI Build-Up for 14,087 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
$387.1K $27.48/SF
− Vacancy
−$48.4K −$3.44/SF
EGI
$338.7K $24.05/SF
− OpEx
−$135.5K −$9.62/SF
NOI
$203.2K $14.43/SF
Area
New Castle County, DE
Vacancy
12.50%
Lease Rate
$27.48 /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%
$4,064,660
Cap Rate 7%
$2,903,329
Cap Rate 9%
$2,258,144
Alternative Uses
Best Use
Healthcare Medical
$2.90M
$2.54M – $3.39M
NOI $203,233 @ 7.0% cap · market cap 3.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.37M
$2.95M – $3.93M
NOI $235,864 @ 7.0% cap · market cap 3.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
670
Businesses Nearby
Explore this area
Business Placement
Demographics for 19713, DE
31,867
Population
12,803
Households
2.5
Avg Household Size
38
Median Age
30%
College-Educated
90%
High-School Grad
13.0 sq mi
ZIP Area
2,451
Density / Sq Mi
$72,850
Median Household Income
$42,557
Median Earnings
$1,293
Median Rent
$267,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Medical facility with long-term lease and annual CPI rental increases.
Where is this medical center located?
The property is located at 774 Christiana Rd Newark, DE.
What is the asking price?
The asking price for this property is $6,529,000.
What are key features of this property?
This property features: Long‑term tenancy with a newly extended 10‑year lease and two 5‑year renewal options.; Corporately guaranteed NNN lease by Minimally Invasive Surgical and Neuroscience Center, LLC, a subsidiary of Surgery Partners, Inc. (NASDAQ: SGRY).; Annual CPI rental increases, capped at 3% per year.
