Renovated Spa & Wellness
For Sale
$349,900
3005 Rapids Drive, Racine, WI 53404
Operating med spa with private treatment rooms, client reception, enclosed grounds, and convenient on-site parking.
Property Size1,220 SF
Price / SF$291.58
Days on Market37
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
Buildings
1
Stories
1
Units
1
Listing Agency:
Re/Max Advantage
(847) 395-3000
Listed By:
Danielle Welker · License #475144765
(847) 395-3000
Source:
Midwestrealestate
Added: Jul 24
Changed: Aug 28
Last Checked: Aug 25 at 7:22AM
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 professional spa and wellness property is currently operating as a med spa and has undergone extensive renovations since 2021. The interior includes a reception and waiting area, three private treatment rooms with individual sinks, a break room, a restroom, and a partial basement for storage. The break room can also function as an additional treatment room or private office.
The property sits on a fully enclosed lot along a high-visibility road in Racine. Nine on-site parking spaces serve clients and staff. Built in 1958, the building offers a flexible professional layout for continued med spa use or other medical, wellness, aesthetic, counseling, dental, insurance, accounting, legal, or general office operations.
The property sits on a fully enclosed lot along a high-visibility road in Racine. Nine on-site parking spaces serve clients and staff. Built in 1958, the building offers a flexible professional layout for continued med spa use or other medical, wellness, aesthetic, counseling, dental, insurance, accounting, legal, or general office operations.
Key Highlights
- Currently operating as a med spa
- Three private treatment rooms, each with its own sink
- Break room can serve as a fourth treatment room or private 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
$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
294
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 - Operating med spa with private treatment rooms, client reception, enclosed grounds, and convenient 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: Currently operating as a med spa; Three private treatment rooms, each with its own sink; Break room can serve as a fourth treatment room or private office
