Medical Building in Science
For Sale
$2,890,000
2014 Sandy Drive, State College, PA 16803
Two-unit dental office building near Penn State University.
Property Size9,202 SF
Price / SF$314.06
Days on Market1017
Property Features for 2014 Sandy Drive
General Information
Standard status
Active
Size
9,202 SF
Property subtype
Commercial
Lease Term
[]
Building Details
Year Built
2003
Listing Agency:
RE/MAX Centre Realty
Listed By:
Marc Mcmaster · License #AB067113
(814) 231-8200
Source:
Deepcreeklake
Added: Nov 22, 2023
Changed: Sep 2
Last Checked: Sep 1 at 8:37PM
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 RE/MAX Centre Realty
Investment Insights
Based on property information with market context.
The property at 2014 Sandy Drive is a two-unit dental office building situated west of Penn State University in the Science Park Commercial District. Classified as a Class A medical building, both units are configured for dental practices. One unit is currently occupied by Advanced Dentistry of Centre County under an absolute NNN lease through 2029, with a direct rent of $9893 plus $3444.23 in additional rent for CAM expenses, which are trued up at year-end. The other unit was previously leased by Advanced Dentistry and is currently vacant as of January 31, 2024. The property features two separate entrances and parking for approximately 50 vehicles. Both AC units were replaced in 2023 and 2024, with the main unit converted to an energy-efficient heat pump. The tenant covers 100% of directly metered utilities and 60.14% of CAM utilities, including building insurance, landscaping/snow removal, permits, property tax, repairs, pest control, and water/sewer. Estimated CAM expenses range from approximately $50,000 to $65,000 per year. This property presents an ideal opportunity for an owner-operator, with potential tax savings and cash flow benefits. Favorable mortgage terms may be available for dentists and small business owners. Owner financing options are also available.
Key Highlights
- Absolute NNN Lease with Advanced Dentistry of Centre County in place through 2029, providing stable income.
- Potential for owner‑operator to occupy the vacant unit and eliminate rent expenses.
- Significant estimated annual tax savings (+$75,000) and after‑tax cash flow (+$30,000) for owner‑operator.
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
$110,940
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
3.84%
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%
$2,218,800
$2.2M
Cap Rate 7%
$1,584,857
$1.6M
Cap Rate 9%
$1,232,667
$1.2M
Market Conditions
NOI Build-Up for 9,202 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
$202.1K $21.96/SF
− Vacancy
−$17.2K −$1.87/SF
EGI
$184.9K $20.09/SF
− OpEx
−$74.0K −$8.04/SF
NOI
$110.9K $12.06/SF
Area
Centre County, PA
Vacancy
8.50%
Lease Rate
$21.96 /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%
$2,218,800
Cap Rate 7%
$1,584,857
Cap Rate 9%
$1,232,667
Alternative Uses
Best Use
Healthcare Medical
$1.58M
$1.39M – $1.85M
NOI $110,940 @ 7.0% cap · market cap 3.84%
Second Best
Office B
$1.52M
$1.33M – $1.77M
NOI $106,214 @ 7.0% cap · market cap 3.68%
Theoretical Best
Office A
$2.03M
$1.78M – $2.37M
NOI $142,261 @ 7.0% cap · market cap 4.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
285
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 16803, PA
24,751
Population
12,155
Households
2
Avg Household Size
29
Median Age
74%
College-Educated
98%
High-School Grad
23.0 sq mi
ZIP Area
1,076
Density / Sq Mi
$71,993
Median Household Income
$35,405
Median Earnings
$1,363
Median Rent
$395,800
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-unit dental office building near Penn State University.
Where is this medical office space located?
The property is located at 2014 Sandy Drive State College, PA.
What is the asking price?
The asking price for this property is $2,890,000.
What are key features of this property?
This property features: Absolute NNN Lease with Advanced Dentistry of Centre County in place through 2029, providing stable income.; Potential for owner‑operator to occupy the vacant unit and eliminate rent expenses.; Significant estimated annual tax savings (+$75,000) and after‑tax cash flow (+$30,000) for owner‑operator.
