Renovated Medical Office
For Sale
$379,000
2551 W Peterson Ave., Chicago, IL 60659
Single-story healthcare office with six exam rooms, reception, staff break area, executive office, and rear parking.
Property Size2,500 SF
Price / SF$151.60
Days on Market193
Property Features for 2551 W Peterson Ave.
General Information
Standard status
Active
Size
2,500 SF
Class
B
Total Parking Spaces
3
Property subtype
Medical/Healthcare
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
2,500 SF
Buildings
1
Stories
1
Properties For Sale
at 2551 W Peterson Ave. Contact us- Size
- 2,500 SF
- Lease Type
- Modified Gross
2551 W. Peterson Ave.
Listing Agency:
Jameson Commercial
(312) 335-3229
Listed By:
Mark Jones · License #475107431
(312) 335-3229
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 6:52AM
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 Jameson Commercial
Investment Insights
Based on property information with market context.
Renovated medical office building at 2551 W. Peterson Ave. offers 2,500 square feet in a single-story configuration. The interior includes a reception area, six exam rooms, an employee break room, and an executive office, providing an established layout for medical office operations.
Rear parking accommodates three vehicles. The property is situated on Peterson Ave. with access to Lake Shore Drive and the I90/94 Expressway in Chicago’s 60659 ZIP code.
Rear parking accommodates three vehicles. The property is situated on Peterson Ave. with access to Lake Shore Drive and the I90/94 Expressway in Chicago’s 60659 ZIP code.
Key Highlights
- 2,500‑square‑foot renovated medical office building
- Six exam rooms within a single‑story layout
- Reception area, employee break room, and executive office
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
$33,120
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
8.74%
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%
$662,400
$662.4K
Cap Rate 7%
$473,143
$473.1K
Cap Rate 9%
$368,000
$368.0K
Market Conditions
NOI Build-Up for 2,500 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
$60.0K $24.00/SF
− Vacancy
−$4.8K −$1.92/SF
EGI
$55.2K $22.08/SF
− OpEx
−$22.1K −$8.83/SF
NOI
$33.1K $13.25/SF
Area
Chicago, IL
Vacancy
8.00%
Lease Rate
$24.00 /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%
$662,400
Cap Rate 7%
$473,143
Cap Rate 9%
$368,000
Alternative Uses
Best Use
Office B
$766.3K
$670.5K – $894.0K
NOI $53,640 @ 7.0% cap · market cap 14.15%
Second Best
Healthcare Medical
$473.1K
$414.0K – $552.0K
NOI $33,120 @ 7.0% cap · market cap 8.74%
Theoretical Best
Office A
$1.18M
$1.03M – $1.38M
NOI $82,512 @ 7.0% cap · market cap 21.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,720
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60659, IL
40,579
Population
14,748
Households
2.8
Avg Household Size
36
Median Age
40%
College-Educated
82%
High-School Grad
2.4 sq mi
ZIP Area
16,908
Density / Sq Mi
$70,033
Median Household Income
$40,493
Median Earnings
$1,391
Median Rent
$358,800
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Holistic Veterinarian — 6044 N Oakley Ave, Chicago, IL 60659
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Single-story healthcare office with six exam rooms, reception, staff break area, executive office, and rear parking.
Where is this medical office space located?
The property is located at 2551 W Peterson Ave. Chicago, IL.
What is the asking price?
The asking price for this property is $379,000.
What are key features of this property?
This property features: 2,500‑square‑foot renovated medical office building; Six exam rooms within a single‑story layout; Reception area, employee break room, and executive office
