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Office Medical

1672 W Ave J

1672 W Ave J, Lancaster, CA 93534

Listing Price: $3,400,000

Cap Rate
4.47%
Gross SF
21,972
Rentable SF
21,972
Price/Gross SF
$154.74
Year Built
1982
Lot Size
1.42 acres

Investment Overview

Marcus & Millichap is pleased to present 1672 W Avenue J in Lancaster, California. The offering consists of a multitenant Medical Office Building totaling 21,972 Square Feet of Rentable Building Area. The building is situated on a large parcel totaling 1.42 Acres providing ample parking for the site (4.81 / 1,000 RSF). Built in 1982 the building has been professionally managed and maintained. There are 30 total suites located in the building, with 16 of the 30 being professional office suites ranging in size from 113 SF to 391 SF. The property is currently 56.73% occupied, which gives the opportunity to an Investor to re-position the asset and achieve a pro forma 8.72% CAP Rate. Additionally, with some expiring leases coming due, an Owner/User can purchase the property and occupy 50% of the property to operate their business in. SBA Financing available with as little as 10% down allowing a user to lock in their occupancy cost far below the market rent. Both the first and second floors are already divided but can be merged together for greater flexibility in either renting out to multiple tenants or single occupancy.

The Antelope Valley Healthcare has recently shown its commitment to the surrounding area by negotiating the purchase of 8.71 acres of land in early 2021, with the intention to develop a rehabilitation and psychiatric hospital. The new facility is expected to have 96 behavioral health beds, 25 inpatient rehab beds, and various outpatient behavioral health services. Additionally in 2021, the Hospital received a BBB Credit Rating from S & P, which is classified as an Investment Grade rating. The rating was given due to the leading market position with broad service lines, many of which are only offered at AVH within the service area; Historically positive operations and cash flow; and Healthy unrestricted reserves resulting in solid days cash on hand and unrestricted reserves-to-long-term debt, which is expected to remain stable.

The building is ideally located directly adjacent to the Antelope Valley Hospital (NAP), a 420 Bed District Hospital. Other location highlights include excellent retail, restaurant and banking amenities in the immediate area, close proximity to the 14 Freeway (Aerospace Hwy) and great visibility along W Avenue J which has over 25,000 average daily traffic counts. Lancaster is the highest populated city in the Antelope Valley with approximately 160,106 people as of 2016. Combined with the neighboring city, Palmdale and ancillary communities, the region has a combined population of approximately 500,000. Lancaster is also rated among the top ten fastest growing cities as is offers a very attractive choice for families and business looking to relocate but wish to enjoy all of the advantages of Southern California.

Investment Highlights

  • Professionally Managed Medical/Professional Office Building
  • Directly Adjacent to the Antelope Valley Hospital 420 Beds
  • Available Below Replacement Cost
  • Opportunity for Owner/User to Purchase with SBA Financing
  • Located in the Highest Populated City in the Antelope Valley
  • Over 25,000 Average Daily Vehicle Counts Along W Avenue J

Exclusively Listed By

Listing Price: $3,400,000

Cap Rate
4.47%
Gross SF
21,972
Rentable SF
21,972
Price/Gross SF
$154.74
Year Built
1982
Lot Size
1.42 acres

Investment Highlights

  • Professionally Managed Medical/Professional Office Building
  • Directly Adjacent to the Antelope Valley Hospital 420 Beds
  • Available Below Replacement Cost
  • Opportunity for Owner/User to Purchase with SBA Financing
  • Located in the Highest Populated City in the Antelope Valley
  • Over 25,000 Average Daily Vehicle Counts Along W Avenue J

Investment Overview

Marcus & Millichap is pleased to present 1672 W Avenue J in Lancaster, California. The offering consists of a multitenant Medical Office Building totaling 21,972 Square Feet of Rentable Building Area. The building is situated on a large parcel totaling 1.42 Acres providing ample parking for the site (4.81 / 1,000 RSF). Built in 1982 the building has been professionally managed and maintained. There are 30 total suites located in the building, with 16 of the 30 being professional office suites ranging in size from 113 SF to 391 SF. The property is currently 56.73% occupied, which gives the opportunity to an Investor to re-position the asset and achieve a pro forma 8.72% CAP Rate. Additionally, with some expiring leases coming due, an Owner/User can purchase the property and occupy 50% of the property to operate their business in. SBA Financing available with as little as 10% down allowing a user to lock in their occupancy cost far below the market rent. Both the first and second floors are already divided but can be merged together for greater flexibility in either renting out to multiple tenants or single occupancy.

The Antelope Valley Healthcare has recently shown its commitment to the surrounding area by negotiating the purchase of 8.71 acres of land in early 2021, with the intention to develop a rehabilitation and psychiatric hospital. The new facility is expected to have 96 behavioral health beds, 25 inpatient rehab beds, and various outpatient behavioral health services. Additionally in 2021, the Hospital received a BBB Credit Rating from S & P, which is classified as an Investment Grade rating. The rating was given due to the leading market position with broad service lines, many of which are only offered at AVH within the service area; Historically positive operations and cash flow; and Healthy unrestricted reserves resulting in solid days cash on hand and unrestricted reserves-to-long-term debt, which is expected to remain stable.

The building is ideally located directly adjacent to the Antelope Valley Hospital (NAP), a 420 Bed District Hospital. Other location highlights include excellent retail, restaurant and banking amenities in the immediate area, close proximity to the 14 Freeway (Aerospace Hwy) and great visibility along W Avenue J which has over 25,000 average daily traffic counts. Lancaster is the highest populated city in the Antelope Valley with approximately 160,106 people as of 2016. Combined with the neighboring city, Palmdale and ancillary communities, the region has a combined population of approximately 500,000. Lancaster is also rated among the top ten fastest growing cities as is offers a very attractive choice for families and business looking to relocate but wish to enjoy all of the advantages of Southern California.

Exclusively Listed By

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