Freestanding Medical Office
For Sale
Contact for pricing
1125 N Delany Rd, Gurnee, IL 60031
Immaculately maintained two-level medical office with high-end buildout, ADA bathrooms, and 15-car parking.
Property Size4,180 SF
Price / SF$226.08
Days on Market599
Property Features for 1125 N Delany Rd
General Information
Standard status
Active
Size
4,180 SF
Property subtype
OFFICE
Listing Agency:
@Properties | Chicago (North)
(773) 772-0200
Listed By:
Michael Levin
Source:
Moodyscre
Added: Dec 19, 2024
Changed: Aug 8
Last Checked: Aug 9 at 12:22PM
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 @Properties | Chicago (North)
Investment Insights
Based on property information with market context.
This freestanding two-level medical office building offers a high-end medical buildout designed for a professional, “home-like” office environment. The first floor includes an open reception area and foyer, six office/treatment rooms, two ADA bathrooms, a Concord elevator/lift, two utility rooms, and two storage rooms. The upper level features wide-open rooms with high ceilings that can be reconfigured, a large conference room/special event area with north-facing exposure, and a full kitchen with wet bar/serving bar. The property also includes additional systems upgrades including Respicaire Oxy 4 plasma air scrubbers added in 2020, a new roof completed in 2023, and a high-security entrance setup with cameras.
The building is located on a 0.30-acre site with strong road access just south of the Route 41 and Delany Rd intersection, with prominent traffic counts reported for both corridors. It is served by a surrounding parking lot with capacity for 15 vehicles.
With an O-1 zoning designation (Restricted Office District), the facility is currently configured as a medical office, and it can be reverted to four equal-sized units with separate gas and electric accounts.
The building is located on a 0.30-acre site with strong road access just south of the Route 41 and Delany Rd intersection, with prominent traffic counts reported for both corridors. It is served by a surrounding parking lot with capacity for 15 vehicles.
With an O-1 zoning designation (Restricted Office District), the facility is currently configured as a medical office, and it can be reverted to four equal-sized units with separate gas and electric accounts.
Key Highlights
- Freestanding, two‑level medical office building in Gurnee with 4,180 total SF and O‑1 restricted office zoning.
- 30,500 VPD on Route 41 and 5,100 VPD on Delany Rd; located just south of the Route 41 and Delany Rd intersection.
- First floor includes reception/foyer, 6 office/treatment rooms, 2 ADA bathrooms, elevator/lift, 2 utility rooms, and 2 storage rooms.
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
$60,544
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
6.41%
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%
$1,210,880
$1.2M
Cap Rate 7%
$864,914
$864.9K
Cap Rate 9%
$672,711
$672.7K
Market Conditions
NOI Build-Up for 4,180 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
$110.4K $26.40/SF
− Vacancy
−$9.4K −$2.26/SF
EGI
$100.9K $24.14/SF
− OpEx
−$40.4K −$9.66/SF
NOI
$60.5K $14.48/SF
Area
Lake County, IL
Vacancy
8.56%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$1,210,880
Cap Rate 7%
$864,914
Cap Rate 9%
$672,711
Alternative Uses
Best Use
Healthcare Medical
$864.9K
$756.8K – $1.01M
NOI $60,544 @ 7.0% cap · market cap 6.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $101,021 @ 7.0% cap · market cap 10.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,007
Businesses Nearby
Explore this area
Business Placement
Demographics for 60031, IL
37,650
Population
14,796
Households
2.5
Avg Household Size
42
Median Age
54%
College-Educated
95%
High-School Grad
19.0 sq mi
ZIP Area
1,982
Density / Sq Mi
$114,008
Median Household Income
$56,770
Median Earnings
$1,601
Median Rent
$322,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Immaculately maintained two-level medical office with high-end buildout, ADA bathrooms, and 15-car parking.
Where is this medical center located?
The property is located at 1125 N Delany Rd Gurnee, IL.
What is the asking price?
The asking price for this property is $945,000.
What are key features of this property?
This property features: Freestanding, two‑level medical office building in Gurnee with 4,180 total SF and O‑1 restricted office zoning.; 30,500 VPD on Route 41 and 5,100 VPD on Delany Rd; located just south of the Route 41 and Delany Rd intersection.; First floor includes reception/foyer, 6 office/treatment rooms, 2 ADA bathrooms, elevator/lift, 2 utility rooms, and 2 storage rooms.
