Renovated Spa and Wellness
For Sale
$349,900
3005 Rapids Drive, Racine, WI 53404
Professional med spa with private treatment rooms, client reception, storage, and dedicated on-site parking.
Property Size1,220 SF
Price / SF$291.58
Days on Market21
Property Features for 3005 Rapids Drive
General Information
Standard status
Active
Size
1,220 SF
Total Parking Spaces
9
Property subtype
Commercial
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$4,719
Building Details
Building Size
1,220 SF
Year Built
1958
Stories
1
Units
1
Listing Agency:
Re/Max Advantage
(847) 395-3000
Listed By:
Danielle Welker · License #475144765
(847) 395-3000
Source:
Allinonerealestateco
Added: Jul 24
Changed: Aug 12
Last Checked: Aug 12 at 11:54AM
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 Advantage
Investment Insights
Based on property information with market context.
This approximately 1,200+ square foot spa and wellness property has operated as a med spa and underwent substantial renovations beginning in 2021. The interior includes a reception and waiting area, three treatment rooms with individual sinks, a break room, restroom, and partial basement storage. The break room may also function as an additional treatment room or private office, subject to the applicable requirements.
A fully enclosed lot provides separation for clients and staff, with nine parking spaces on site. The property is located at 3005 Rapids Drive in Racine, Wisconsin, and its layout supports continued spa use or other professional wellness and office applications.
A fully enclosed lot provides separation for clients and staff, with nine parking spaces on site. The property is located at 3005 Rapids Drive in Racine, Wisconsin, and its layout supports continued spa use or other professional wellness and office applications.
Key Highlights
- Approximately 1,200+ square feet of professional commercial space
- Renovations completed since 2021
- Three treatment rooms, each with its own sink
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
$15,498
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
4.43%
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%
$309,960
$310.0K
Cap Rate 7%
$221,400
$221.4K
Cap Rate 9%
$172,200
$172.2K
Market Conditions
NOI Build-Up for 1,200 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
$25.2K $21.00/SF
− Vacancy
−$4.5K −$3.78/SF
EGI
$20.7K $17.22/SF
− OpEx
−$5.2K −$4.31/SF
NOI
$15.5K $12.92/SF
Area
Racine County, WI
Vacancy
18.00%
Lease Rate
$21.00 /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%
$309,960
Cap Rate 7%
$221,400
Cap Rate 9%
$172,200
Alternative Uses
Best Use
Office B
$221.4K
$193.7K – $258.3K
NOI $15,498 @ 7.0% cap · market cap 4.43%
Second Best
Healthcare Medical
$211.2K
$184.8K – $246.4K
NOI $14,785 @ 7.0% cap · market cap 4.23%
Theoretical Best
Office A
$288.6K
$252.5K – $336.7K
NOI $20,200 @ 7.0% cap · market cap 5.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
665
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53404, WI
15,532
Population
5,110
Households
3
Avg Household Size
32
Median Age
13%
College-Educated
82%
High-School Grad
4.9 sq mi
ZIP Area
3,170
Density / Sq Mi
$47,714
Median Household Income
$35,419
Median Earnings
$968
Median Rent
$126,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Harmony Acupuncture & Wellness now In Balance Acupuncture & Wellness LLC — 2149 N Green Bay Rd, Racine, WI 53405
Frequently Asked Questions
What type of property is this?
Spa & wellness property - Professional med spa with private treatment rooms, client reception, storage, and dedicated on-site parking.
Where is this spa & wellness property located?
The property is located at 3005 Rapids Drive Racine, WI.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: Approximately 1,200+ square feet of professional commercial space; Renovations completed since 2021; Three treatment rooms, each with its own sink
