Medical Office Building with
For Sale
$550,000
Pending
1561 N Division St, Morris, IL 60450
Former clinical layout includes plumbed exam rooms, offices, reception, and three bathrooms.
Property Size2,484 SF
Days on Market152
Property Features for 1561 N Division St
General Information
Standard status
Pending
Size
2,484 SF
Property subtype
Commercial
Building Details
Year Built
1983
Listing Agency:
RE/MAX Top Properties
Listed By:
David Welter · License #475183240
(815) 791-1672
Source:
Searchillinoishomesforsale
Added: Apr 4
Changed: Sep 1
Last Checked: Sep 1 at 9:24PM
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 RE/MAX Top Properties
Investment Insights
Based on property information with market context.
This medical office property includes a former clinical layout with 10 exam rooms, including 8 with existing plumbing, along with 3 bathrooms, a reception area, and 2 private offices. A full basement provides additional interior space; it was previously finished and may be restored. The building was constructed in 1983 and is being offered as-is.
The sale includes an 8.43-acre parcel and adjacent vacant land. The property is located at 1561 N Division St in Morris, Illinois, with on-site parking noted in the property information.
The sale includes an 8.43-acre parcel and adjacent vacant land. The property is located at 1561 N Division St in Morris, Illinois, with on-site parking noted in the property information.
Key Highlights
- 10 exam rooms, with 8 already outfitted with plumbing
- Full basement with prior finished use and restoration potential
- 3 bathrooms, spacious reception area, and 2 private offices
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
$34,250
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
6.23%
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%
$685,000
$685.0K
Cap Rate 7%
$489,286
$489.3K
Cap Rate 9%
$380,556
$380.6K
Market Conditions
NOI Build-Up for 2,484 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
$60.8K $24.48/SF
− Vacancy
−$15.1K −$6.10/SF
EGI
$45.7K $18.38/SF
− OpEx
−$11.4K −$4.60/SF
NOI
$34.3K $13.79/SF
Area
Grundy 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%
$685,000
Cap Rate 7%
$489,286
Cap Rate 9%
$380,556
Alternative Uses
Best Use
Office B
$489.3K
$428.1K – $570.8K
NOI $34,250 @ 7.0% cap · market cap 6.23%
Second Best
Healthcare Medical
$470.1K
$411.4K – $548.5K
NOI $32,908 @ 7.0% cap · market cap 5.98%
Theoretical Best
Office A
$857.6K
$750.4K – $1.00M
NOI $60,033 @ 7.0% cap · market cap 10.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
765
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60450, IL
20,877
Population
9,306
Households
2.2
Avg Household Size
42
Median Age
25%
College-Educated
94%
High-School Grad
157.6 sq mi
ZIP Area
132
Density / Sq Mi
$81,716
Median Household Income
$45,813
Median Earnings
$1,122
Median Rent
$266,600
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 - Former clinical layout includes plumbed exam rooms, offices, reception, and three bathrooms.
Where is this medical office space located?
The property is located at 1561 N Division St Morris, IL.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 10 exam rooms, with 8 already outfitted with plumbing; Full basement with prior finished use and restoration potential; 3 bathrooms, spacious reception area, and 2 private offices
