Investment Overview

Marcus & Millichap, as exclusive Broker, is pleased to offer for sale the White Oak Medical Building. Location: The subject property is located on Lincoln Way, the main thoroughfare in White Oak Borough, a suburb of Pittsburgh, in Allegheny County which is about a 30-minute drive northwest. The Property: Built in 1981, the two-story 13,764 square foot brick condominium building is maintained in excellent condition by ownership. There are two office suites on the first level and three on the second level. Each is owned by the practitioner who also operates their individual medical / dental practices. All have agreed to sell and continue their occupancy as tenants for 1-3, or 5-years. One unit has been vacant since December 2023, however the owner will agree to sign a one-year lease at a reduced rental rate to help offset the carrying costs of a vacant suite. Access to the second floor is by an open stairway in the front and a utility stairway in the rear of the building. An elevator is also available. The property is situated on 0.59 acres with 65 lined parking spaces. The rubber roof was replaced 10 years ago. A drive through portico over the front entrance protects visitors during inclement weather. Rents | Vacancy: Rents in the submarket have increased by 0.8% in the past 12 months and are currently around $16.90/SF. Rents have increased by 5.9% over the past three years, higher than the Pittsburgh market average of 4.0%. Around 4.8% of 1 & 2-Star space is vacant, and there has been 53,000 SF of negative absorption over the past year. CoStar's estimated cap rate for the Parkway East Corridor has averaged 10.2% over the past three years, which is lower than the current estimated cap rate of 11.2%. This is an excellent opportunity for an investor or professional to acquire a medical office building in excellent condition with no deferred maintenance at well below replacement cost. The facility has a long history of being occupied by medical professionals who have shown a strong commitment to the area by owning the offices where they built and maintained their successful practices. The investor upside is that as the current owners/practitioners retire, it provides an opportunity for a smooth transition to a fully stabilized property at market rates with low vacancy. The suites can be easily reconfigured since most of the demising walls are nonstructural. Medical Office Space Demand: Medical office space demand will grow in the long term. The need for healthcare is closely tied with the aging population, and the 75-plus category is projected to be one of the fastest-growing age groups over the next 10 years. Additionally, the national uninsured rate is decreasing.