Renovated Medical
For Sale
Contact for pricing
1325 KOESTER DR, Forsyth, IL 62535
Net-leased urgent care facility with recent improvements and a long-term lease structure.
Property Size4,856 SF
Lot Size0.46 Acres
Price / SF$219.32
Days on Market125
Property Features for 1325 KOESTER DR
General Information
Standard status
Active
Size
4,856 SF
Lot size
0.46 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$82,552
Financials
Asking Price
$1,065,000
Cap Rate
7.75%
Additional Details
Highway Access
Yes
Building Details
Year Built
1980
Year Renovated
2021
Buildings
1
Units
1
Tenancy
Single
Building Size
4,856 SF
Listing Agency:
Marcus & Millichap - Indianapolis
(317) 218-5329
Listed By:
Nathan Whalen · License #IN AB21402364
Source:
Crexi
Added: Apr 29
Changed: Aug 29
Last Checked: Aug 29 at 10:06PM
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 Marcus & Millichap - Indianapolis
Investment Insights
Based on property information with market context.
This 4,856-square-foot medical center in Forsyth, Illinois, operates as an urgent care facility on a 0.46-acre site. Built in 1980 and fully renovated in 2021, the property received a new roof in 2026 backed by a 20-year transferable warranty.
The facility is located at 1325 Koester Dr, directly off Interstate 72 and near Hickory Point Mall. Nearby national retailers include Best Buy, PetSmart, Lowe’s, Walmart, Sam’s Club, Kohl’s, and TJ Maxx, while the corridor carries approximately 24,400 vehicles per day.
A 10-year lease began in November 2021 and extends through October 2031, with approximately 5.5 years remaining and two 5-year renewal options. The tenant reimburses CAM, taxes, and insurance, and the lease provides 3% annual rent increases during both option periods.
The facility is located at 1325 Koester Dr, directly off Interstate 72 and near Hickory Point Mall. Nearby national retailers include Best Buy, PetSmart, Lowe’s, Walmart, Sam’s Club, Kohl’s, and TJ Maxx, while the corridor carries approximately 24,400 vehicles per day.
A 10-year lease began in November 2021 and extends through October 2031, with approximately 5.5 years remaining and two 5-year renewal options. The tenant reimburses CAM, taxes, and insurance, and the lease provides 3% annual rent increases during both option periods.
Key Highlights
- 4,856‑square‑foot urgent care facility on 0.46 acres
- Fully renovated in 2021; roof replaced in 2026 with a 20‑year transferable warranty
- 10‑year lease commenced in November 2021 and runs through October 2031
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
$38,547
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
3.62%
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%
$770,940
$770.9K
Cap Rate 7%
$550,671
$550.7K
Cap Rate 9%
$428,300
$428.3K
Market Conditions
NOI Build-Up for 4,856 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
$61.2K $12.60/SF
− Vacancy
−$9.8K −$2.02/SF
EGI
$51.4K $10.58/SF
− OpEx
−$12.8K −$2.65/SF
NOI
$38.5K $7.94/SF
Area
Macon County, IL
Vacancy
16.00%
Lease Rate
$12.60 /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%
$770,940
Cap Rate 7%
$550,671
Cap Rate 9%
$428,300
Alternative Uses
Best Use
Office B
$550.7K
$481.8K – $642.5K
NOI $38,547 @ 7.0% cap · market cap 3.62%
Second Best
Healthcare Medical
$546.3K
$478.0K – $637.4K
NOI $38,241 @ 7.0% cap · market cap 3.59%
Theoretical Best
Specialty Retail
$815.6K
$713.7K – $951.6K
NOI $57,095 @ 7.0% cap · market cap 5.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
434
Businesses Nearby
Explore this area
Business Placement
Demographics for 62535, IL
3,745
Population
1,346
Households
2.8
Avg Household Size
44
Median Age
59%
College-Educated
97%
High-School Grad
3.6 sq mi
ZIP Area
1,040
Density / Sq Mi
$113,456
Median Household Income
$69,632
Median Earnings
$1,207
Median Rent
$289,800
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 center - Net-leased urgent care facility with recent improvements and a long-term lease structure.
Where is this medical center located?
The property is located at 1325 KOESTER DR Forsyth, IL.
What is the asking price?
The asking price for this property is $1,065,000.
What are key features of this property?
This property features: 4,856‑square‑foot urgent care facility on 0.46 acres; Fully renovated in 2021; roof replaced in 2026 with a 20‑year transferable warranty; 10‑year lease commenced in November 2021 and runs through October 2031
