REIT Sale | Renovated MOB with High Yield 7111 E 21st St 39,587 SF 86% Leased Office Building Online Auction Sale Wichita, KS 67206
INVESTMENT HIGHLIGHTS
- This institutionally maintained MOB has received extensive CapEx and is currently 86% occupied, housing the operations center for anchor tenant PCA.
- This exceptional investment offers a strong going-in NOI and the upside to lease vacancies boasting second-generation clinical build-outs.
- Along with a new roof in 2017 (2025 warranty), ownership has invested over $872K to update the common areas, parking lot asphalt, HVAC units, & more.
- Sitting 4 miles from Wesley Medical Center and 1 mile from Wesley Woodlawn Hospital, tenants have strong synergy with many nearby medical providers.
EXECUTIVE SUMMARY
CBRE U.S. Healthcare Capital Markets is pleased to exclusively offer the opportunity to acquire the fee simple interest in the Primary Care Associates medical office building, an expertly maintained Class B, medical outpatient building located at 7111 E 21st Street in Wichita, Kansas. Delivered 86% occupied with a robust first-year NOI, this exciting opportunity provides a cash-flowing asset with additional growth potential to fill the remaining vacancies, which all boast second-generation clinical build-outs. With local vacancy rates of just 4.9% and annual rent growth of more than 2.8%, there is significant upside for a value-add investor seeking a stabilized asset in this performing submarket.
Institutionally owned and managed, the 39,587-square-foot facility has received numerous upgrades and renovations in recent years. In addition to replacing the roof in 2017 with a warranty through November 2025, current ownership has spent approximately $872,000 in capital expenditures that include the common area lobby, parking lot asphalt overlay, HVAC units, and significant tenant improvement allowances. Sitting on a 4.78-acre lot, the building offers a parking ratio of 5.1/1000, with 200 surface parking spaces.
7111 E 21st Street is approximately 70% leased by anchor tenant Primary Care Associates (PCA) through November 2027. The remaining occupied spaces are leased by a physical therapy provider and a medical services coordinator. PCA has delivered family medicine to the Wichita metro for over 20 years by providing complete primary care and preventive medicine throughout the lifetime of their patients. Representing their sole location, Primary Care Associates signed an initial 15-year lease at the property in 2012, then signed an expansion in 2016 to reach their current footprint. PCA can refer patients to services provided by other tenants in the building for physical therapy and healthcare services, providing exceptional synergy.
7111 E 21st Street is strategically located along the Rock Road artery with access from Highway 96, just one mile from Wesley Woodlawn Hospital & ER (HCA Healthcare - NYSE: HCA). Renowned for world-class emergency care, imaging, and diagnostic care, Wesley Woodlawn Hospital & ER treats over 24,000 patients and delivers more than 5,000 babies annually, more than any hospital in a 13-state region. Businesses can also find opportunities for referral and collaboration at the Wesley Medical Center, the area’s largest healthcare hub with 760 beds, just 4 miles away.
Property is being listed by Keith Baker | CBRE | KS License #00019315
Institutionally owned and managed, the 39,587-square-foot facility has received numerous upgrades and renovations in recent years. In addition to replacing the roof in 2017 with a warranty through November 2025, current ownership has spent approximately $872,000 in capital expenditures that include the common area lobby, parking lot asphalt overlay, HVAC units, and significant tenant improvement allowances. Sitting on a 4.78-acre lot, the building offers a parking ratio of 5.1/1000, with 200 surface parking spaces.
7111 E 21st Street is approximately 70% leased by anchor tenant Primary Care Associates (PCA) through November 2027. The remaining occupied spaces are leased by a physical therapy provider and a medical services coordinator. PCA has delivered family medicine to the Wichita metro for over 20 years by providing complete primary care and preventive medicine throughout the lifetime of their patients. Representing their sole location, Primary Care Associates signed an initial 15-year lease at the property in 2012, then signed an expansion in 2016 to reach their current footprint. PCA can refer patients to services provided by other tenants in the building for physical therapy and healthcare services, providing exceptional synergy.
7111 E 21st Street is strategically located along the Rock Road artery with access from Highway 96, just one mile from Wesley Woodlawn Hospital & ER (HCA Healthcare - NYSE: HCA). Renowned for world-class emergency care, imaging, and diagnostic care, Wesley Woodlawn Hospital & ER treats over 24,000 patients and delivers more than 5,000 babies annually, more than any hospital in a 13-state region. Businesses can also find opportunities for referral and collaboration at the Wesley Medical Center, the area’s largest healthcare hub with 760 beds, just 4 miles away.
Property is being listed by Keith Baker | CBRE | KS License #00019315
OFFERING MEMORANDUM Click Here to Access
DATA ROOM Click Here to Access
- Operating and Financial Statements
- Purchase Agreement
- Title and Insurance
- Offering Memorandum
- Miscellaneous
- Third Party Reports
MARKET ANALYTICS Click Here to Access
$99,999
Asset Value
$99,999
12 Month Sales Volume
12 Month Sales Volume
Total
Lowest
Highest
Transactions
999
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Sales Volume
$99,999
$99,999
$99,999
Properties Sold
999
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Transacted SF
999
999
999
Average SF
999
999
999
9.9%
Market Cap Rate
9.9%
Market Sale Price/SF Change (YOY)
12 Month Sales Price
Average
Lowest
Highest
Market
Cap Rate
9.9%
9.9%
9.9%
9.9%
Sale Price/SF
$99,999
$99,999
$99,999
$99,999
Sale Price
$99,999
$99,999
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Sale vs Asking Price
-9.9%
-9.9%
-9.9%
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% Leased at Sale
9.9%
9.9%
9.9%
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Market Sale Price per SF
Wichita - KS USA
Market Cap Rate
Wichita - KS USA
Market Sale Price per SF by Star Rating
1 - 2 Star
3 Star
4 - 5 Star
Market Cap Rate by Star Rating
1 - 2 Star
3 Star
4 - 5 Star
Market Sale Price per SF Distribution
Market Cap Rate Distribution
PROPERTY FACTS
Sale Type
Investment
Sale Condition
Auction Sale
Type of Ownership
Fee Simple
Property Type
Office
Property Subtype
Medical
Building Size
39,587 SF
Building Class
B
Year Built/Renovated
1980/1996
NOI
$703,406
Percent Leased
86%
Tenancy
Multiple
Building Height
1 Story
Typical Floor Size
39,587 SF
Building FAR
0.19
Lot Size
4.78 AC
Zoning
GO - General Office
Parking
140 Spaces (3.54 Spaces per 1,000 SF Leased)
AMENITIES
- Reception
SPACE AVAILABILITY
- SPACE
- SIZE
- SPACE USE
- CONDITION
- AVAILABLE
4,260 SF available with direct access to the parking with outstanding tenant roster including a large primary care practice. The space features newer interior and exterior finishes with signage available.
1,291 SF available right off the building lobby with outstanding tenant roster including a large primary care practice. The space features newer interior and exterior finishes with signage available.
| Space | Size | Space Use | Condition | Available |
| 1st Floor | 4,260 SF | Office/Medical | Full Build-Out | Now |
| 1st Floor | 1,291 SF | Office/Medical | Full Build-Out | Now |
1st Floor
| Size |
| 4,260 SF |
| Space Use |
| Office/Medical |
| Condition |
| Full Build-Out |
| Available |
| Now |
1st Floor
| Size |
| 1,291 SF |
| Space Use |
| Office/Medical |
| Condition |
| Full Build-Out |
| Available |
| Now |
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DEMOGRAPHICS
Demographics
1 Mile
3 Mile
5 Mile
2024 Population
10,562
65,027
166,275
2020 Population
10,664
64,534
160,136
2029 Population
10,709
66,159
170,108
2024-2029 Projected Population Growth
1.4%
1.7%
2.3%
Daytime Employees
8,152
54,023
121,652
Total Businesses
855
5,732
12,077
Average Household Income
$79,093
$86,922
$78,082
Median Household Income
$54,866
$64,690
$56,982
Total Consumer Spending
$136.1M
$783.2M
$1.9B
Median Age
39.6
35.6
35.4
2024 Households
5,016
26,770
67,231
Percent College Degree or Above
25%
24%
19%
Average Home Value
$281,156
$258,821
$225,944
PROPERTY TAXES
| Parcel Numbers | Improvements Assessment | $678,350 | |
| Land Assessment | $212,161 | Total Assessment | $890,511 |
SALE ADVISOR
SALE ADVISOR
Christopher Manassero, Associate Broker
(714) 742-0121
Contact
Mr. Manassero specializes in the acquisition and disposition of investment Commercial Real Estate in Southern California on behalf of high-net worth individuals, family trusts and private investors. Mr. Manassero’s expertise in finance and thorough understanding of the market enhances the value he provides to clients by accurately assessing investment properties, evaluating their performance, and identifying opportunities for asset repositioning through 1031 exchanges.
Before joining CBRE & Lee & Associates - Pasadena, Inc., Mr. Manassero worked as an Audit Associate reviewing client financial statements and conducting audits. Well versed in the Wealth Management and Capital Funds market, Mr. Manassero has experience assisting clients with finding leasing and financing options to best fit their needs to help grow and expand their business.
Before joining CBRE & Lee & Associates - Pasadena, Inc., Mr. Manassero worked as an Audit Associate reviewing client financial statements and conducting audits. Well versed in the Wealth Management and Capital Funds market, Mr. Manassero has experience assisting clients with finding leasing and financing options to best fit their needs to help grow and expand their business.
ABOUT THE AUCTION PLATFORM
Ten-X Commercial is the leading end-to-end digital transaction platform for commercial real estate. With over $26bn sold, Ten-X’s platform empowers brokers, sellers and buyers with data-driven technology and comprehensive marketing tools to expand market visibility and decrease time to close. Ten-X consistently yields trade rates at two times the industry average. Ten-X expedites the entire CRE transaction timeline by enabling brokers and sellers to tap into a digital platform that makes it easy to onboard properties, evaluate the success of complimentary omnichannel marketing campaigns and follow up on the strongest pre-qualified leads. Buyers are precision-matched with properties aligned with their investment goals, with unprecedented access to market analysis and due diligence documents to help them securely acquire properties online, with confidence.
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AUCTION CONTACT
Keisha Hartshorn
Contact
Auctioneer License:
Ten-X, Inc. Arlene Richardson RE Brkr CO00002437
