6542 SE Lake Rd
Milwaukie, OR 97222
Lake Road Medical · Office Property For Sale

Marcus & Millichap has been selected to exclusively market for sale the Lake Road Medical Complex. The subject property is situated in the Milwaukie Business-Industrial District where it benefits from its location near the I-205 and OR 224 interchange approximately 15 minutes from Downtown Portland. The two building complex totals 22,459 square feet of medical office space situated on 2.47 Acres and includes 120 on-site parking spaces. As a part of this offering, there is additional land on the southwest corner of the property which may provide the opportunity to develop another building. The buildings have been well maintained and are owned by a few of the current tenants who have extended their leases. Lake Road Medical Center is conveniently located within the Portland suburb of Milwaukie, which allows for quick access to the Portland International Airport and the balance of the Portland metropolitan statistical area (MSA) via nearby I-205. This property serves the Milwaukie, Clackamas, and Sunnyside areas with an average household income in a one-mile radius of $79,871. Highway OR 224 is a main east side arterial that connects I-205 and 99E, benefiting the Subject Property with easy access to residential areas of Clackamas, Happy Valley, and Southeast Portland. The city of Milwaukie has been proactive in attracting developers and in 2019 the completion of the Axletree Apartments (mixed-use with 110 new residential units) is expected with several others in the planning process. The office vacancy rate for the Clackamas/Milwaukie submarket is 2.2 percent according to the most recent report available on CoStar and according to our survey, medical office lease comps in the submarket range are between $26 and $29/NNN. With the apartment market facing new regulatory and supply-demand hurdles and urban creative office facing supply issues, medical offices have become among the favorite asset classes for investors. As such, given the attractive going in Cap Rate and balanced rent roll with low/middle rents, we expect strong interest from the investment community.