Medical Office Building
For Sale
Contact for pricing
999 Division St, Prescott, AZ 86301
Single-tenant medical office building near Dignity Health hospital.
Property Size4,922 SF
Price / SF$344.37
Days on Market811
Property Features for 999 Division St
General Information
Standard status
Active
Size
4,922 SF
Class
A
Property subtype
Office
Zoning
BG
Lease Type
Net
Building Details
Year Built
1988
Stories
2
Tenancy
Single
Listing Agency:
Better Homes and Gardens BloomTree Realty
Listed By:
Raymond Zogob · License #AZ SA553424000
(619) 997-3329
Source:
Crexi
Added: Jun 25, 2024
Changed: Sep 1
Last Checked: Sep 13 at 4:14AM
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 Better Homes and Gardens BloomTree Realty
Investment Insights
Based on property information with market context.
This single-tenant medical office building is a net-leased investment opportunity located adjacent to the Dignity Health hospital’s west campus in Prescott, Arizona. The 4,922-square-foot building is currently leased to Arizona Neurosurgery & Spine. The lease commenced on January 1, 2022, and expires on December 31, 2026. Originally constructed in 1988, the building has been recently renovated and is in excellent condition. The main level features approximately 4,000 square feet and includes 5 exam rooms with sinks, 3 provider offices (convertible into additional exam rooms), 1 large surgical room, 3 surgical prep rooms, a separate lobby and entrance for surgical procedures, 2 nursing stations, a manager's office, a large waiting room and reception desk, a stacked washer/dryer room, 2 storage rooms, 2 restrooms, and a private outside patio area. The second floor, approximately 920 square feet, offers additional office space in a large open bullpen area, a kitchen breakroom with a sink and built-in countertops, and a separate restroom. There are 24 on-site parking spaces. The tenant currently leases only the first-floor space, while the second-floor space is available for lease or use by the future building owner. The property is offered with a going-in CAP Rate of 7.1% and annual CPI increases.
Key Highlights
- Net Leased Investment with a strong 7.1% CAP Rate and annual CPI increases.
- Single Tenant Medical Office Building, conveniently adjacent to Dignity Health hospital.
- Leased to Arizona Neurosurgery & Spine until 12‑31‑26.
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
$80,186
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
4.73%
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%
$1,603,720
$1.6M
Cap Rate 7%
$1,145,514
$1.1M
Cap Rate 9%
$890,956
$891.0K
Market Conditions
NOI Build-Up for 4,922 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
$142.9K $29.04/SF
− Vacancy
−$9.3K −$1.89/SF
EGI
$133.6K $27.15/SF
− OpEx
−$53.5K −$10.86/SF
NOI
$80.2K $16.29/SF
Area
Yavapai County, AZ
Vacancy
6.50%
Lease Rate
$29.04 /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%
$1,603,720
Cap Rate 7%
$1,145,514
Cap Rate 9%
$890,956
Alternative Uses
Best Use
Healthcare Medical
$1.15M
$1.00M – $1.34M
NOI $80,186 @ 7.0% cap · market cap 4.73%
Second Best
Office B
$1.02M
$894.8K – $1.19M
NOI $71,586 @ 7.0% cap · market cap 4.22%
Theoretical Best
Warehouse
$1.65M
$1.44M – $1.92M
NOI $115,420 @ 7.0% cap · market cap 6.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,758
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 86301, AZ
25,115
Population
13,863
Households
1.8
Avg Household Size
57
Median Age
37%
College-Educated
96%
High-School Grad
33.4 sq mi
ZIP Area
752
Density / Sq Mi
$71,962
Median Household Income
$33,989
Median Earnings
$1,580
Median Rent
$495,100
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 Office Space - Single-tenant medical office building near Dignity Health hospital.
Where is this medical office space located?
The property is located at 999 Division St Prescott, AZ.
What is the asking price?
The asking price for this property is $1,695,000.
What are key features of this property?
This property features: Net Leased Investment with a strong 7.1% CAP Rate and annual CPI increases.; Single Tenant Medical Office Building, conveniently adjacent to Dignity Health hospital.; Leased to Arizona Neurosurgery & Spine until 12‑31‑26.
