Industrial Flex Building with
For Sale
$1,995,000
419 North Kays Drive, Normal, IL 61761
Industrial flex building with a large open main floor, upper level, and multiple oversized private rooms.
Property Size19,200 SF
Days on Market41
Property Features for 419 North Kays Drive
General Information
Standard status
Active
Size
19,200 SF
Property subtype
Industrial
Additional Details
Business Included
Yes
Building Details
Building Size
19,200 SF
Listing Agency:
SVN | Core 3
(309) 262-4535
Listed By:
Tom Dibble · License #475160875
Source:
Svn
Added: Jul 19
Changed: Aug 26
Last Checked: Aug 25 at 11:48AM
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 SVN | Core 3
Investment Insights
Based on property information with market context.
This versatile industrial commercial building is currently operating as The Workout Company and is offered for sale. The layout includes a large open-concept main floor that can support gym, training, warehouse, flex, or recreational uses, along with an upper level and multiple oversized private rooms. The space also features a welcoming front entry with a built-in beverage/protein bar area.
The open floor plan can be maintained or partitioned to support a custom configuration. The property is set up for flexible day-to-day operations, with additional rooming that may allow for separate uses.
Existing gym equipment and the business are negotiable and may be included with the sale, depending on terms.
The open floor plan can be maintained or partitioned to support a custom configuration. The property is set up for flexible day-to-day operations, with additional rooming that may allow for separate uses.
Existing gym equipment and the business are negotiable and may be included with the sale, depending on terms.
Key Highlights
- 1994‑built industrial flex/commercial building currently operating as The Workout Company
- Large open‑concept main floor suited for gym, training, warehouse, flex, or recreational use
- Upper level plus multiple oversized private rooms for add‑on space and potential subleasing
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
$161,010
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
8.07%
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%
$3,220,200
$3.2M
Cap Rate 7%
$2,300,143
$2.3M
Cap Rate 9%
$1,789,000
$1.8M
Market Conditions
NOI Build-Up for 19,200 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
$200.4K $10.44/SF
− Vacancy
−$11.0K −$0.57/SF
EGI
$189.4K $9.87/SF
− OpEx
−$28.4K −$1.48/SF
NOI
$161.0K $8.39/SF
Area
McLean County, IL
Vacancy
5.50%
Lease Rate
$10.44 /SF/Yr
Expense Ratio
15.00%
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%
$3,220,200
Cap Rate 7%
$2,300,143
Cap Rate 9%
$1,789,000
Alternative Uses
Best Use
Warehouse
$2.30M
$2.01M – $2.68M
NOI $161,010 @ 7.0% cap · market cap 8.07%
Second Best
Industrial
$1.89M
$1.66M – $2.21M
NOI $132,596 @ 7.0% cap · market cap 6.65%
Theoretical Best
Office A
$4.00M
$3.50M – $4.67M
NOI $280,166 @ 7.0% cap · market cap 14.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
486
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 61761, IL
53,045
Population
22,037
Households
2.4
Avg Household Size
28
Median Age
52%
College-Educated
98%
High-School Grad
42.6 sq mi
ZIP Area
1,245
Density / Sq Mi
$66,642
Median Household Income
$28,606
Median Earnings
$976
Median Rent
$200,900
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial flex building with a large open main floor, upper level, and multiple oversized private rooms.
Where is this flex space located?
The property is located at 419 North Kays Drive Normal, IL.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: 1994‑built industrial flex/commercial building currently operating as The Workout Company; Large open‑concept main floor suited for gym, training, warehouse, flex, or recreational use; Upper level plus multiple oversized private rooms for add‑on space and potential subleasing
