280 Sierra College Drive, Suite 120
Dignity Health Leased Medical Office | 5,665 SF | 7.15% Cap Rate
Marketing description
Tucker Commercial and Colliers are pleased to present for sale Suite 120 at 280 Sierra College Drive — a 5,665 SF NNN-leased medical office condominium occupied by Dignity Health Medical Group – Sierra Nevada, a subsidiary of CommonSpirit Health (S&P: A-). The offering is priced at $2,260,000, representing a 7.15% cap rate on NOI of $161,549.
Dignity Health has occupied the suite since 2010, operating a mission-critical family medicine practice less than two minutes from Sierra Nevada Memorial Hospital. The investment is fully passive under the NNN lease — the tenant assumes all interior maintenance and the owners' association covers exterior, structural, parking, and common area maintenance, effectively eliminating active management for the investor.
The Sierra College medical corridor is one of the tightest medical office submarkets in the Sacramento MSA, with approximately 2.5% vacancy and high barriers to new supply. With a 16-year tenancy, 3% annual escalations, two FMV renewal options, and an investment-grade health system tenant, the property offers durable passive income in a supply-constrained market.
Investment highlights
- Investment-grade tenant: CommonSpirit Health (S&P: A-), one of the nation's largest health systems
- 16-year tenancy history since 2010
- Fully passive NNN — OA-managed exterior, structure, and common areas
- 3% annual rent escalations through lease expiration
- Two 3-year renewal options at FMV
- ~2.5% submarket vacancy with high barriers to new supply
- Less than two minutes from Sierra Nevada Memorial Hospital
- Premier Sierra College medical corridor location
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