Medical Center with Long-Term
For Sale
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5 Ludwig Dr, Fairview Heights, IL 62208
Single-tenant medical center at 5 Ludwig Dr with HSHS operating since 2013 and a roof replacement in 2020.
Property Size5,080 SF
Price / SF$243.90
Days on Market264
Property Features for 5 Ludwig Dr
General Information
Standard status
Active
Size
5,080 SF
Property subtype
RETAIL
Listing Agency:
Echo West Capital Advisors
(208) 841-7310
Listed By:
Sean Westfall · License #SA700127000
(602) 885-5375
Source:
Moodyscre
Added: Nov 21, 2025
Changed: Aug 10
Last Checked: Aug 10 at 2:59AM
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 Echo West Capital Advisors
Investment Insights
Based on property information with market context.
This is a single-tenant medical center property at 5 Ludwig Dr in Fairview Heights, IL, currently leased to Hospital Sisters Health System (HSHS). HSHS Medical Group has operated at the site since 2013 and recently exercised its second five-year option, reflecting long-term commitment to the location. The property also includes 4% annual rent increases over the current term and option period.
HSHS is a nonprofit healthcare provider with an “A+” credit rating from both S&P and Fitch, operating 15 hospitals across Illinois and Wisconsin and an integrated network of nearly 2,300 physicians. Clinical services highlighted for HSHS Medical Group include heart and vascular, hospice, mammogram, and home health.
In August 2020, a new roof was installed along with brand-new gutters and soffits. Additional improvements are underway, including clearing underbrush and trees around the property line, with new parking lot and building lighting planned.
HSHS is a nonprofit healthcare provider with an “A+” credit rating from both S&P and Fitch, operating 15 hospitals across Illinois and Wisconsin and an integrated network of nearly 2,300 physicians. Clinical services highlighted for HSHS Medical Group include heart and vascular, hospice, mammogram, and home health.
In August 2020, a new roof was installed along with brand-new gutters and soffits. Additional improvements are underway, including clearing underbrush and trees around the property line, with new parking lot and building lighting planned.
Key Highlights
- Single‑tenant medical center at 5 Ludwig Dr leased to Hospital Sisters Health System (HSHS)
- HSHS has operated at the location since 2013 and recently exercised its second five‑year option
- New roof installed in August 2020, with brand‑new gutters and soffits
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
$59,906
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
4.84%
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%
$1,198,120
$1.2M
Cap Rate 7%
$855,800
$855.8K
Cap Rate 9%
$665,622
$665.6K
Market Conditions
NOI Build-Up for 5,080 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
$111.6K $21.96/SF
− Vacancy
−$11.7K −$2.31/SF
EGI
$99.8K $19.65/SF
− OpEx
−$39.9K −$7.86/SF
NOI
$59.9K $11.79/SF
Area
St. Clair County, IL
Vacancy
10.50%
Lease Rate
$21.96 /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%
$1,198,120
Cap Rate 7%
$855,800
Cap Rate 9%
$665,622
Alternative Uses
Best Use
Healthcare Medical
$855.8K
$748.8K – $998.4K
NOI $59,906 @ 7.0% cap · market cap 4.84%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $84,183 @ 7.0% cap · market cap 6.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
841
Businesses Nearby
Explore this area
Business Placement
Demographics for 62208, IL
16,992
Population
8,148
Households
2.1
Avg Household Size
42
Median Age
31%
College-Educated
93%
High-School Grad
13.4 sq mi
ZIP Area
1,268
Density / Sq Mi
$78,423
Median Household Income
$42,640
Median Earnings
$1,222
Median Rent
$167,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Single-tenant medical center at 5 Ludwig Dr with HSHS operating since 2013 and a roof replacement in 2020.
Where is this medical center located?
The property is located at 5 Ludwig Dr Fairview Heights, IL.
What is the asking price?
The asking price for this property is $1,239,000.
What are key features of this property?
This property features: Single‑tenant medical center at 5 Ludwig Dr leased to Hospital Sisters Health System (HSHS); HSHS has operated at the location since 2013 and recently exercised its second five‑year option; New roof installed in August 2020, with brand‑new gutters and soffits
