Medical Office Building with
For Sale
$1,550,000
846 Freedom Boulevard, Watsonville, CA 95076
Medical office property with flexible occupancy options and dedicated parking serving multiple Freedom Boulevard parcels.
Property Size3,248 SF
Lot Size0.44 Acres
Price / SF$477.22
Days on Market229
Property Features for 846 Freedom Boulevard
General Information
Standard status
Active
Size
3,248 SF
Lot size
0.44 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1950
Buildings
1
Listing Agency:
Albers Real Estate Investment Company
(831) 372-1922
Listed By:
Hap Albers · License #01006595
(831) 372-1922
Source:
Exitrealty
Added: Jan 13
Changed: Aug 29
Last Checked: Jul 4 at 9:15PM
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 Albers Real Estate Investment Company
Investment Insights
Based on property information with market context.
This 3,248-square-foot medical office building includes a mix of occupied and available space. Approximately 40–50% of the building is vacant and configured for a new tenant or owner occupancy. Existing use includes massage, chiropractic, and acupuncture therapy, while the remaining area is arranged as medical office space. The property was built in 1950 and features a composition exterior.
The offering includes 846 Freedom Boulevard together with 338 Sudden Street, a separate parking lot identified by APN 018-021-023. The combined parcels total 19,254 square feet and include 36 parking spaces. This parking also serves 850 Freedom Boulevard, creating a shared parking component within the assembled property.
The offering includes 846 Freedom Boulevard together with 338 Sudden Street, a separate parking lot identified by APN 018-021-023. The combined parcels total 19,254 square feet and include 36 parking spaces. This parking also serves 850 Freedom Boulevard, creating a shared parking component within the assembled property.
Key Highlights
- 3,248‑square‑foot medical office building
- Approximately 40–50% vacant for tenant or owner occupancy
- Current use includes massage, chiropractic, and acupuncture therapy
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
$100,289
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
6.47%
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%
$2,005,780
$2.0M
Cap Rate 7%
$1,432,700
$1.4M
Cap Rate 9%
$1,114,322
$1.1M
Market Conditions
NOI Build-Up for 3,248 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
$175.4K $54.00/SF
− Vacancy
−$8.2K −$2.54/SF
EGI
$167.1K $51.46/SF
− OpEx
−$66.9K −$20.58/SF
NOI
$100.3K $30.88/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$54.00 /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%
$2,005,780
Cap Rate 7%
$1,432,700
Cap Rate 9%
$1,114,322
Alternative Uses
Best Use
Healthcare Medical
$1.43M
$1.25M – $1.67M
NOI $100,289 @ 7.0% cap · market cap 6.47%
Second Best
Office B
$1.14M
$997.5K – $1.33M
NOI $79,803 @ 7.0% cap · market cap 5.15%
Theoretical Best
Retail
$1.86M
$1.63M – $2.17M
NOI $130,004 @ 7.0% cap · market cap 8.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,389
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office property with flexible occupancy options and dedicated parking serving multiple Freedom Boulevard parcels.
Where is this medical office space located?
The property is located at 846 Freedom Boulevard Watsonville, CA.
What is the asking price?
The asking price for this property is $1,550,000.
What are key features of this property?
This property features: 3,248‑square‑foot medical office building; Approximately 40–50% vacant for tenant or owner occupancy; Current use includes massage, chiropractic, and acupuncture therapy
