Two-Tenant Med-Tail
For Sale
$1,999,600
16641 S Halsted St, Harvey, IL 60426
Two-tenant med-tail center anchored by DaVita Dialysis with long-term lease options and scheduled rent increases.
Property Size8,864 SF
Price / SF$225.59
Days on Market81
Property Features for 16641 S Halsted St
General Information
Standard status
Active
Size
8,864 SF
Property subtype
Shopping Strip
Financials
Cap Rate
8%
Business Included
Yes
Site & Location
Traffic Count
178,200 vehicles/day
Highway Access
Yes
Amenities
100 Percent Occupied Two-Tenant Med-Tail Center | DaVita Dialysis & Happy Daze
Long-Operating History | DaVita has Been Operating at this Location Since 2006
Lease Features Renewal Options with Scheduled Rental Increases During Each Option Period
0.5 miles from On/Off Ramp of Interstate 294, Which Sees 178,200 Vehicles per Day
Near Top Ranked Shopping Centers and New Casino | Strong Surrounding Drivers
Densely Populated Trade Area with a High Daytime Population
Building Details
Building Size
8,864 SF
Year Built
2006
Tenancy
Multi
Listing Agency:
Chicago Oak Brook Office
Listed By:
Adrian Mendoza · License #License(s): IL: 475.147980
(630) 570-2163
Source:
Marcusmillichap
Added: Jun 17
Changed: Aug 14
Last Checked: Sep 5 at 4:04AM
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 Chicago Oak Brook Office
Investment Insights
Based on property information with market context.
This two-tenant med-tail center is designed to support medical and retail uses, anchored by DaVita Dialysis. The DaVita lease accounts for over 77 percent of base rent and has been in place at the location for 20 years, with a recently exercised five-year option.
A second tenant, Happy Daze, operates as a smoke and vape shop and has operated at the site for eight years, with one 10-year option remaining. Each lease includes scheduled rental increases.
The property offers prominent roadside visibility with frontage along S. Halsted Street exceeding 200 feet and is located about 0.5 miles from I-294. The ownership summary also notes a location within a dense three-mile trade area, including more than 74,000 residents and nearly 80,000 employees.
A second tenant, Happy Daze, operates as a smoke and vape shop and has operated at the site for eight years, with one 10-year option remaining. Each lease includes scheduled rental increases.
The property offers prominent roadside visibility with frontage along S. Halsted Street exceeding 200 feet and is located about 0.5 miles from I-294. The ownership summary also notes a location within a dense three-mile trade area, including more than 74,000 residents and nearly 80,000 employees.
Key Highlights
- Two‑tenant med‑tail center built in 2006, anchored by DaVita Dialysis.
- DaVita accounts for over 77% of base rent; operating at the location for 20 years and recently exercised a five‑year option.
- Happy Daze smoke and vape shop has operated at the site for eight years with one 10‑year option remaining.
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
$123,034
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
6.15%
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%
$2,460,680
$2.5M
Cap Rate 7%
$1,757,629
$1.8M
Cap Rate 9%
$1,367,044
$1.4M
Market Conditions
NOI Build-Up for 8,864 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
$191.5K $21.60/SF
− Vacancy
−$15.7K −$1.77/SF
EGI
$175.8K $19.83/SF
− OpEx
−$52.7K −$5.95/SF
NOI
$123.0K $13.88/SF
Area
Cook County, IL
Vacancy
8.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$2,460,680
Cap Rate 7%
$1,757,629
Cap Rate 9%
$1,367,044
Alternative Uses
Best Use
Retail
$1.76M
$1.54M – $2.05M
NOI $123,034 @ 7.0% cap · market cap 6.15%
Second Best
Healthcare Medical
$1.68M
$1.47M – $1.96M
NOI $117,430 @ 7.0% cap · market cap 5.87%
Theoretical Best
Office A
$3.06M
$2.68M – $3.57M
NOI $214,223 @ 7.0% cap · market cap 10.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
178,200 VPD
Traffic count
Multi-tenant
Tenancy
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
499
Businesses Nearby
Explore this area
Business Placement
Demographics for 60426, IL
24,114
Population
10,870
Households
2.2
Avg Household Size
37
Median Age
10%
College-Educated
77%
High-School Grad
7.7 sq mi
ZIP Area
3,132
Density / Sq Mi
$40,995
Median Household Income
$29,712
Median Earnings
$987
Median Rent
$88,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Strip mall - Two-tenant med-tail center anchored by DaVita Dialysis with long-term lease options and scheduled rent increases.
Where is this strip mall located?
The property is located at 16641 S Halsted St Harvey, IL.
What is the asking price?
The asking price for this property is $1,999,600.
What are key features of this property?
This property features: Two‑tenant med‑tail center built in 2006, anchored by DaVita Dialysis.; DaVita accounts for over 77% of base rent; operating at the location for 20 years and recently exercised a five‑year option.; Happy Daze smoke and vape shop has operated at the site for eight years with one 10‑year option remaining.
