Multi-Tenant Medical Office
New
For Sale
$12,200,000
2000 McDonald Road, South Elgin, IL 60177
Professionally managed office property with medical, business, and early learning occupants near Randall Road.
Property Size32,415 SF
Days on Market2
Property Features for 2000 McDonald Road
General Information
Standard status
Active
Size
32,415 SF
Class
A
Property subtype
Medical/Office Building
Building Details
Building Size
32,415 SF
Year Built
2008
Listing Agency:
O'Donnell Commercial Real Estate, Inc.
(630) 400-7327
Listed By:
Kevin J. O'Donnell
(630) 400-7327
Source:
Odcre
Added: Aug 19
Changed: Aug 20
Last Checked: Aug 20 at 6:33AM
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 O'Donnell Commercial Real Estate, Inc.
Investment Insights
Based on property information with market context.
Built in 2008, this multi-tenant office property combines medical, professional, and early learning uses within a professionally managed building. Occupancy is reported at 97%, with the first floor dedicated to an early learning and child care center and the second floor configured for medical and business office tenants. Existing improvements include 13 childcare classrooms, a kitchen, pantry, in-unit laundry, staff room, private offices, a secure exterior playground, covered student drop-off, and a private staff entrance. The property also features paved parking, irrigated landscaping, enclosed waste receptacle areas, an upgraded fire alarm system, computerized HVAC with M-13 filtration, and fiber-optic service from AT&T, Xfinity, and Metronet.
The building is located across from the South Elgin & Countryside Fire Protection District Fire and EMS Station and a few hundred yards west of Randall Road. It sits 7.4 miles north of Northwestern’s Delnor Hospital and 6.8 miles south of Advocate Sherman Hospital, with surrounding residential, retail, restaurant, recreational, banking, and general merchandise uses.
The building is located across from the South Elgin & Countryside Fire Protection District Fire and EMS Station and a few hundred yards west of Randall Road. It sits 7.4 miles north of Northwestern’s Delnor Hospital and 6.8 miles south of Advocate Sherman Hospital, with surrounding residential, retail, restaurant, recreational, banking, and general merchandise uses.
Key Highlights
- 97% occupied multi‑tenant office property
- Built in 2008 with medical, professional, and early learning uses
- First floor includes 13 childcare classrooms and a secure exterior playground
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
$450,416
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
3.69%
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%
$9,008,320
$9.0M
Cap Rate 7%
$6,434,514
$6.4M
Cap Rate 9%
$5,004,622
$5.0M
Market Conditions
NOI Build-Up for 32,415 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
$816.9K $25.20/SF
− Vacancy
−$66.2K −$2.04/SF
EGI
$750.7K $23.16/SF
− OpEx
−$300.3K −$9.26/SF
NOI
$450.4K $13.90/SF
Area
Kane County, IL
Vacancy
8.10%
Lease Rate
$25.20 /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%
$9,008,320
Cap Rate 7%
$6,434,514
Cap Rate 9%
$5,004,622
Alternative Uses
Best Use
Healthcare Medical
$6.43M
$5.63M – $7.51M
NOI $450,416 @ 7.0% cap · market cap 3.69%
Second Best
Office B
$6.38M
$5.59M – $7.45M
NOI $446,950 @ 7.0% cap · market cap 3.66%
Theoretical Best
Office A
$11.19M
$9.79M – $13.06M
NOI $783,399 @ 7.0% cap · market cap 6.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
639
Businesses Nearby
Explore this area
Business Placement
Demographics for 60177, IL
24,361
Population
8,700
Households
2.8
Avg Household Size
37
Median Age
38%
College-Educated
91%
High-School Grad
8.9 sq mi
ZIP Area
2,737
Density / Sq Mi
$123,700
Median Household Income
$59,266
Median Earnings
$1,612
Median Rent
$296,200
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?
Office building - Professionally managed office property with medical, business, and early learning occupants near Randall Road.
Where is this office building located?
The property is located at 2000 McDonald Road South Elgin, IL.
What is the asking price?
The asking price for this property is $12,200,000.
What are key features of this property?
This property features: 97% occupied multi‑tenant office property; Built in 2008 with medical, professional, and early learning uses; First floor includes 13 childcare classrooms and a secure exterior playground
