Medical Office Building with Physical Therapy
For Sale
Contact for pricing
1140 East Algonquin Road, Algonquin, IL 60102
Fully occupied facility with built-in annual rental increases and a long-standing operator.
Property Size4,433 SF
Price / SF$156.19
Days on Market89
Property Features for 1140 East Algonquin Road
General Information
Standard status
Active
Size
4,433 SF
Property subtype
Office
Occupancy
100%
Lease Type
NN
Investment Type
Stabilized
Additional Details
Highway Access
Yes
Building Details
Tenancy
Single
Building Size
4,433 SF
Listing Agency:
Matthews
Listed By:
Noah Grossman · License #475.216591
Source:
Crexi
Added: Jun 4
Changed: Aug 30
Last Checked: Aug 30 at 5:39PM
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 Matthews
Investment Insights
Based on property information with market context.
This 4,433-square-foot medical office building is fully occupied by Diamond Physical Therapy, an established outpatient physical therapy provider. The tenancy includes built-in annual rental increases, and the practice has a long operating history serving patients in the northwest Chicago suburbs.
The property is located at 1140 East Algonquin Road in Algonquin, Illinois, along a high-traffic corridor near residential communities and retail amenities. Access to Interstate 90, Route 31, and Randall Road supports connectivity throughout the surrounding suburban area. The village is situated along the Fox River and has continued commercial development and expanding healthcare demand.
The property is located at 1140 East Algonquin Road in Algonquin, Illinois, along a high-traffic corridor near residential communities and retail amenities. Access to Interstate 90, Route 31, and Randall Road supports connectivity throughout the surrounding suburban area. The village is situated along the Fox River and has continued commercial development and expanding healthcare demand.
Key Highlights
- 4,433‑square‑foot medical office building
- Fully occupied by Diamond Physical Therapy
- Built‑in annual rental increases
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
$61,124
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
8.83%
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%
$1,222,480
$1.2M
Cap Rate 7%
$873,200
$873.2K
Cap Rate 9%
$679,156
$679.2K
Market Conditions
NOI Build-Up for 4,433 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
$108.5K $24.48/SF
− Vacancy
−$27.0K −$6.10/SF
EGI
$81.5K $18.38/SF
− OpEx
−$20.4K −$4.60/SF
NOI
$61.1K $13.79/SF
Area
McHenry County, IL
Vacancy
24.90%
Lease Rate
$24.48 /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%
$1,222,480
Cap Rate 7%
$873,200
Cap Rate 9%
$679,156
Alternative Uses
Best Use
Office B
$873.2K
$764.1K – $1.02M
NOI $61,124 @ 7.0% cap · market cap 8.83%
Second Best
Healthcare Medical
$857.0K
$749.9K – $999.8K
NOI $59,989 @ 7.0% cap · market cap 8.66%
Theoretical Best
Office A
$1.53M
$1.34M – $1.79M
NOI $107,136 @ 7.0% cap · market cap 15.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
498
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60102, IL
31,959
Population
12,076
Households
2.6
Avg Household Size
42
Median Age
43%
College-Educated
95%
High-School Grad
15.8 sq mi
ZIP Area
2,023
Density / Sq Mi
$128,070
Median Household Income
$59,484
Median Earnings
$1,826
Median Rent
$320,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully occupied facility with built-in annual rental increases and a long-standing operator.
Where is this medical office space located?
The property is located at 1140 East Algonquin Road Algonquin, IL.
What is the asking price?
The asking price for this property is $692,410.
What are key features of this property?
This property features: 4,433‑square‑foot medical office building; Fully occupied by Diamond Physical Therapy; Built‑in annual rental increases
