Dialysis & Retail NNN
For Sale
Contact for pricing
4259 South Cottage Grove Avenue, Chicago, IL 60653
100% occupied, healthcare-anchored NNN retail building with DaVita as the primary tenant through 2038.
Property Size18,972 SF
Price / SF$419.14
Days on Market54
Property Features for 4259 South Cottage Grove Avenue
General Information
Standard status
Active
Size
18,972 SF
Property subtype
Retail, Office
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$508,928
Building Details
Year Built
2012
Buildings
1
Stories
2
Units
3
Tenancy
Multi
Listing Agency:
Bang Realty
(888) 737-2264
Listed By:
Brian Brockman · License #BRK.200900214
Source:
Crexi
Added: Jun 16
Changed: Aug 7
Last Checked: Aug 8 at 11:35AM
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 Bang Realty
Investment Insights
Based on property information with market context.
The DaVita Dialysis + Retail property is an 18,972-square-foot, 100% occupied building configured to support an essential healthcare use alongside complementary local retail. DaVita Dialysis occupies 89% of the space under a long-term lease running through December 31, 2038, with approximately 12.5 years remaining. The remaining tenancy includes T-Mobile and The Beauty Bar. DaVita and T-Mobile operate under NNN lease structures, while The Beauty Bar operates under a modified gross lease.
The asset is located at 4259 South Cottage Grove Avenue in Chicago’s Bronzeville/Oakland neighborhood. As the anchor tenant, DaVita provides dialysis services for patients with chronic kidney failure and end-stage renal disease. The corporate parent, DaVita Inc., is a Fortune 500® company with an “BB” Stable credit rating (S&P).
For buyers or investors, this property combines long-term healthcare tenancy with additional income streams from retail and communications under distinct lease structures. Rent escalations are in place, including a 10% increase for DaVita in 2033 and annual 3% increases for T-Mobile throughout the primary term and option periods, supporting an extended lease horizon through 2038.
The asset is located at 4259 South Cottage Grove Avenue in Chicago’s Bronzeville/Oakland neighborhood. As the anchor tenant, DaVita provides dialysis services for patients with chronic kidney failure and end-stage renal disease. The corporate parent, DaVita Inc., is a Fortune 500® company with an “BB” Stable credit rating (S&P).
For buyers or investors, this property combines long-term healthcare tenancy with additional income streams from retail and communications under distinct lease structures. Rent escalations are in place, including a 10% increase for DaVita in 2033 and annual 3% increases for T-Mobile throughout the primary term and option periods, supporting an extended lease horizon through 2038.
Key Highlights
- 18,972 SF retail building built in 2012, 100% occupied with healthcare‑anchored tenancy
- DaVita Dialysis is the anchor tenant, occupying 89% of the property under a long‑term lease through Dec 31, 2038
- DaVita rent increases 10% in 2033, supporting income growth during the primary term
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
$262,474
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
3.30%
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%
$5,249,480
$5.2M
Cap Rate 7%
$3,749,629
$3.7M
Cap Rate 9%
$2,916,378
$2.9M
Market Conditions
NOI Build-Up for 18,972 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
$409.8K $21.60/SF
− Vacancy
−$34.8K −$1.84/SF
EGI
$375.0K $19.76/SF
− OpEx
−$112.5K −$5.93/SF
NOI
$262.5K $13.83/SF
Area
Chicago, IL
Vacancy
8.50%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$5,249,480
Cap Rate 7%
$3,749,629
Cap Rate 9%
$2,916,378
Alternative Uses
Best Use
Retail
$3.75M
$3.28M – $4.37M
NOI $262,474 @ 7.0% cap · market cap 3.30%
Second Best
Healthcare Medical
$3.59M
$3.14M – $4.19M
NOI $251,341 @ 7.0% cap · market cap 3.16%
Theoretical Best
Office A
$8.95M
$7.83M – $10.44M
NOI $626,167 @ 7.0% cap · market cap 7.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,083
Businesses Nearby
32k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 93%
Electronics 7%
Family Dollar
Shops & Services
16,354 visits/mo
0.3 miles
Dollar General
Shops & Services
13,526 visits/mo
0.5 miles
Metro by T-Mobile
Electronics
2,144 visits/mo
0.1 miles
Demographics for 60653, IL
33,146
Population
18,279
Households
1.8
Avg Household Size
37
Median Age
38%
College-Educated
90%
High-School Grad
2.4 sq mi
ZIP Area
13,811
Density / Sq Mi
$39,565
Median Household Income
$49,335
Median Earnings
$856
Median Rent
$347,800
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - 100% occupied, healthcare-anchored NNN retail building with DaVita as the primary tenant through 2038.
Where is this medical center located?
The property is located at 4259 South Cottage Grove Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $7,952,000.
What are key features of this property?
This property features: 18,972 SF retail building built in 2012, 100% occupied with healthcare‑anchored tenancy; DaVita Dialysis is the anchor tenant, occupying 89% of the property under a long‑term lease through Dec 31, 2038; DaVita rent increases 10% in 2033, supporting income growth during the primary term
