Union, Missouri Medical Investment
For Sale
Contact for pricing
1935 Prairie Dell Rd, Union, MO 63084
Leased to St. John's Mercy Health Care through June 2029.
Property Size14,592 SF
Price / SF$219.98
Days on Market941
Property Features for 1935 Prairie Dell Rd
General Information
Standard status
Active
Size
14,592 SF
Class
A
Property subtype
Office
Zoning
B-2
Building Details
Year Built
1998
Listing Agency:
SVN | Chicago Commercial
Listed By:
Tim Franz · License #IL 475153640
Source:
Crexi
Added: Jan 22, 2024
Changed: Aug 20
Last Checked: Aug 20 at 12:56PM
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 SVN | Chicago Commercial
Investment Insights
Based on property information with market context.
Located in Union, Missouri, the property is leased to St. John's Mercy Health Care, backed by the Catholic Church institution. The tenant has occupied the location since 2009 and has extended their lease through June of 2029, with two percent annual increases. The property is located at 1935 Prairie Dell Rd, Union, Missouri, just south of Interstate 70, surrounded by dense residential areas and a strong retail corridor with national retailers nearby. Union, established in 1825, is located less than 30 minutes from West St. Louis County, off I-44 in Franklin County. The city has transformed into a bedroom community and industrial hub, with a population of 9,000 residents and over 300 businesses. East Central College, with 3,500 students, is also located in Union. The property size is 14592 square feet.
Key Highlights
- Leased to St. John's Mercy Health Care, backed by the Catholic Church institution, providing a stable tenant
- Lease extends through June 2029 with a recently completed early five‑year extension, ensuring long‑term income
- Features two percent (2%) annual rent increases, offering built‑in revenue growth
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
$172,754
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
5.38%
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%
$3,455,080
$3.5M
Cap Rate 7%
$2,467,914
$2.5M
Cap Rate 9%
$1,919,489
$1.9M
Market Conditions
NOI Build-Up for 14,592 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
$330.9K $22.68/SF
− Vacancy
−$43.0K −$2.95/SF
EGI
$287.9K $19.73/SF
− OpEx
−$115.2K −$7.89/SF
NOI
$172.8K $11.84/SF
Area
Franklin County, MO
Vacancy
13.00%
Lease Rate
$22.68 /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%
$3,455,080
Cap Rate 7%
$2,467,914
Cap Rate 9%
$1,919,489
Alternative Uses
Best Use
Healthcare Medical
$2.47M
$2.16M – $2.88M
NOI $172,754 @ 7.0% cap · market cap 5.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.30M
$3.76M – $5.01M
NOI $300,714 @ 7.0% cap · market cap 9.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
154
Businesses Nearby
Explore this area
Business Placement
Demographics for 63084, MO
19,500
Population
8,511
Households
2.3
Avg Household Size
38
Median Age
21%
College-Educated
90%
High-School Grad
76.3 sq mi
ZIP Area
256
Density / Sq Mi
$72,332
Median Household Income
$42,327
Median Earnings
$852
Median Rent
$221,800
Median Home Value
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 center - Leased to St. John's Mercy Health Care through June 2029.
Where is this medical center located?
The property is located at 1935 Prairie Dell Rd Union, MO.
What is the asking price?
The asking price for this property is $3,210,000.
What are key features of this property?
This property features: Leased to St. John's Mercy Health Care, backed by the Catholic Church institution, providing a stable tenant; Lease extends through June 2029 with a recently completed early five‑year extension, ensuring long‑term income; Features **two percent (2%) annual rent increases**, offering built‑in revenue growth
