Renovated Medical Office with Treatment
For Sale
$349,900
3005 Rapids Drive, Racine, WI 53404
Commercial Sale, Racine, WI
Property Size1,200 SF
Lot Size0.19 Acres
Price / SF$291.58
Days on Market46
Property Features for 3005 Rapids Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Northwestern Ave to Rapids Dr, East to property
Subdivision
WI-Mt.Pleasant / Racine
Standard status
Active
APN
21195017
Lot size
0.19 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
4720
Utilities
Cooling system
Central Air
Building Details
Year built
1958
Floors in Building
1
Number of units
1
Listing Agency:
Re/Max Advantage · RE/MAX International
(847) 395-3000
Listed By:
Danielle Welker · License #6627094
(847) 293-6453
Added: Jul 24
Changed: Aug 20
Last Checked: Sep 7 at 3:06PM
MLS# 12715001
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This medical office property is currently configured for med spa operations, with a reception and waiting area, three private treatment rooms, a break room, restroom, and partial basement storage. Each treatment room includes its own sink, while the break room can also function as an additional treatment room or private office. Renovations have been completed since 2021, and the building features central air conditioning.
The property includes a fully enclosed 0.19-acre lot and nine on-site parking spaces. Located at 3005 Rapids Drive in Racine, the site is positioned on a high-visibility road and can accommodate medical, wellness, aesthetics, spa, counseling, dental, or general office operations. Individual treatment rooms or office suites may also be leased separately, according to the property information.
The property includes a fully enclosed 0.19-acre lot and nine on-site parking spaces. Located at 3005 Rapids Drive in Racine, the site is positioned on a high-visibility road and can accommodate medical, wellness, aesthetics, spa, counseling, dental, or general office operations. Individual treatment rooms or office suites may also be leased separately, according to the property information.
Key Highlights
- Medical office currently configured for med spa operations
- Renovations completed since 2021
- Three private treatment rooms, each with its own sink
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$15,498
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.43%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$309,960
$310.0K
Cap Rate 7%
$221,400
$221.4K
Cap Rate 9%
$172,200
$172.2K
Market Conditions
NOI Build-Up for 1,200 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$25.2K $21.00/SF
− Vacancy
−$4.5K −$3.78/SF
EGI
$20.7K $17.22/SF
− OpEx
−$5.2K −$4.31/SF
NOI
$15.5K $12.92/SF
Area
Racine County, WI
Vacancy
18.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$309,960
Cap Rate 7%
$221,400
Cap Rate 9%
$172,200
Alternative Uses
Best Use
Office B
$221.4K
$193.7K – $258.3K
NOI $15,498 @ 7.0% cap · market cap 4.43%
Second Best
Healthcare Medical
$211.2K
$184.8K – $246.4K
NOI $14,785 @ 7.0% cap · market cap 4.23%
Theoretical Best
Office A
$288.6K
$252.5K – $336.7K
NOI $20,200 @ 7.0% cap · market cap 5.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
294
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53404, WI
15,532
Population
5,110
Households
3
Avg Household Size
32
Median Age
13%
College-Educated
82%
High-School Grad
4.9 sq mi
ZIP Area
3,170
Density / Sq Mi
$47,714
Median Household Income
$35,419
Median Earnings
$968
Median Rent
$126,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Renovated professional space includes private treatment rooms, reception, break area, storage, and on-site parking.
Where is this medical office space located?
The property is located at 3005 Rapids Drive Racine, WI.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: Medical office currently configured for med spa operations; Renovations completed since 2021; Three private treatment rooms, each with its own sink
