NNN Drug Store
New
For Sale
$2,584,000
106 Milan Avenue, Norwalk, OH 44857
Freestanding retail asset leased to CVS under an absolute net structure with no landlord responsibilities.
Property Size10,112 SF
Days on Market2
Property Features for 106 Milan Avenue
General Information
Standard status
Active
Size
10,112 SF
Property subtype
Street Retail
Additional Details
Traffic Count
13,976 vehicles/day
Building Details
Building Size
10,112 SF
Year Built
2000
Tenancy
Single
Listing Agency:
Encore Real Estate Investment Services
Listed By:
Michael Gaggo · License #6501381426
(248) 866-4977
Source:
Thebrokerlist
Added: Sep 1
Last Checked: Sep 2 at 1:12PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
This freestanding drug store is occupied by CVS, which has operated at the property since 1999. The building was completed in 2000 and is subject to an absolute net lease, placing zero landlord responsibilities on ownership. Lease structure includes ten five-year renewal options, with a 20% rent increase scheduled during the first renewal period.
The property fronts Milan Avenue in Norwalk, Ohio, along an established commercial corridor carrying approximately 13,976 vehicles per day. Access is provided near the signalized intersection of Milan Avenue and E. League Street. The surrounding retail environment includes Walmart, ALDI, McDonald’s, Starbucks, Chipotle, Burger King, Wendy’s, Dunkin’, Tractor Supply Co., AutoZone, O’Reilly Auto Parts, Dollar Tree, Advance Auto Parts, T-Mobile, Cricket Wireless, KFC, and Taco Bell.
More than 27,600 residents live within five miles, where average household income is approximately $80,104. Norwalk serves as the Huron County seat and connects to U.S. Routes 20 and 250, State Route 61, and the Ohio Turnpike via I-80/I-90.
The property fronts Milan Avenue in Norwalk, Ohio, along an established commercial corridor carrying approximately 13,976 vehicles per day. Access is provided near the signalized intersection of Milan Avenue and E. League Street. The surrounding retail environment includes Walmart, ALDI, McDonald’s, Starbucks, Chipotle, Burger King, Wendy’s, Dunkin’, Tractor Supply Co., AutoZone, O’Reilly Auto Parts, Dollar Tree, Advance Auto Parts, T-Mobile, Cricket Wireless, KFC, and Taco Bell.
More than 27,600 residents live within five miles, where average household income is approximately $80,104. Norwalk serves as the Huron County seat and connects to U.S. Routes 20 and 250, State Route 61, and the Ohio Turnpike via I-80/I-90.
Key Highlights
- Absolute net lease with zero landlord responsibilities
- CVS operating at the property since 1999; building completed in 2000
- Ten five‑year renewal options, including a 20% increase in the first renewal option
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
$147,120
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
5.69%
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%
$2,942,400
$2.9M
Cap Rate 7%
$2,101,714
$2.1M
Cap Rate 9%
$1,634,667
$1.6M
Market Conditions
NOI Build-Up for 10,112 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
$202.6K $20.04/SF
− Vacancy
−$6.5K −$0.64/SF
EGI
$196.2K $19.40/SF
− OpEx
−$49.0K −$4.85/SF
NOI
$147.1K $14.55/SF
Area
Huron County, OH
Vacancy
3.20%
Lease Rate
$20.04 /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%
$2,942,400
Cap Rate 7%
$2,101,714
Cap Rate 9%
$1,634,667
Alternative Uses
Best Use
Specialty Retail
$2.10M
$1.84M – $2.45M
NOI $147,120 @ 7.0% cap · market cap 5.69%
Second Best
Retail
$620.1K
$542.6K – $723.5K
NOI $43,407 @ 7.0% cap · market cap 1.68%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
13,976 VPD
Traffic count
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
392
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 44857, OH
23,619
Population
10,579
Households
2.2
Avg Household Size
41
Median Age
21%
College-Educated
93%
High-School Grad
81.6 sq mi
ZIP Area
289
Density / Sq Mi
$62,227
Median Household Income
$42,100
Median Earnings
$795
Median Rent
$170,400
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drug store - Freestanding retail asset leased to CVS under an absolute net structure with no landlord responsibilities.
Where is this drug store located?
The property is located at 106 Milan Avenue Norwalk, OH.
What is the asking price?
The asking price for this property is $2,584,000.
What are key features of this property?
This property features: Absolute net lease with zero landlord responsibilities; CVS operating at the property since 1999; building completed in 2000; Ten five‑year renewal options, including a 20% increase in the first renewal option
