Medical Office Building For
For Sale
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6200 Central Ave, Portage, IN 46368
Medical office building with long-term tenant commitment through October 2030.
Property Size4,701 SF
Price / SF$372.26
Days on Market146
Property Features for 6200 Central Ave
General Information
Standard status
Active
Size
4,701 SF
Property subtype
Office
Occupancy
100%
Lease Type
Net
Investment Type
Net Lease
Net Operating Income
$131,487
Building Details
Year Renovated
2020
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Greenstone Partners
Listed By:
Jason St. John · License #IL 475142612
Source:
Crexi
Added: Mar 24
Changed: Aug 12
Last Checked: Aug 14 at 6:06AM
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 Greenstone Partners
Investment Insights
Based on property information with market context.
This property features a medical office building that was completely re-developed to Northwest Medical Group’s specifications in 2020. The tenant has a 10-year lease commitment through October of 2030, with three, five-year options. Rental escalations are set at 2% per annum. Northwest Medical Group is a regional healthcare network comprised of three hospitals and more than 30 physician office locations across Northwest Indiana. Northwest Health serves over 700,000 people within the region. The Northwest Health network includes five emergency departments, six urgent cares, three outpatient surgery centers, occupational medicine centers, and an inpatient rehabilitation unit. Northwest Health possesses more than 4,000 employees and 700 physicians. Portage serves as a major medical hub for the region, near Porter County’s Regency and Northwest Health Hospitals. The property is located 0.7 miles south of Interstate 80/90 and 2.2 miles north of U.S. Route 6. The South Shore Line commuter rail is just 4 miles north of the property. Positioned on Central Avenue, east of Willowcreek Road, the location offers a variety of restaurant options, as well as neighboring businesses such as Walgreens, Family Dollar, and Strack & Van Til. The property is located 23 miles east of the Indiana/Illinois border. The property features demographics including an average household income of nearly $80,000 and a median home value of $181,000+ within three miles. The population within three miles has experienced 16% growth since 2000. The property size is 4701 square feet.
Key Highlights
- Long‑term tenant (Northwest Medical Group) with lease through October 2030 and renewal options, ensuring secure cash flow.
- Rental escalations of 2% per annum, ensuring increasing returns.
- Located within a dominant regional healthcare network (Northwest Health) serving over 700,000 people.
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
$124,720
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
7.13%
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%
$2,494,400
$2.5M
Cap Rate 7%
$1,781,714
$1.8M
Cap Rate 9%
$1,385,778
$1.4M
Market Conditions
NOI Build-Up for 4,701 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
$221.1K $47.04/SF
− Vacancy
−$13.3K −$2.82/SF
EGI
$207.9K $44.22/SF
− OpEx
−$83.1K −$17.69/SF
NOI
$124.7K $26.53/SF
Area
Porter County, IN
Vacancy
6.00%
Lease Rate
$47.04 /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%
$2,494,400
Cap Rate 7%
$1,781,714
Cap Rate 9%
$1,385,778
Alternative Uses
Best Use
Healthcare Medical
$1.78M
$1.56M – $2.08M
NOI $124,720 @ 7.0% cap · market cap 7.13%
Second Best
Office B
$806.8K
$705.9K – $941.2K
NOI $56,474 @ 7.0% cap · market cap 3.23%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
74
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46368, IN
39,837
Population
16,870
Households
2.4
Avg Household Size
39
Median Age
18%
College-Educated
90%
High-School Grad
25.3 sq mi
ZIP Area
1,575
Density / Sq Mi
$72,638
Median Household Income
$42,508
Median Earnings
$1,140
Median Rent
$213,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office building with long-term tenant commitment through October 2030.
Where is this medical office space located?
The property is located at 6200 Central Ave Portage, IN.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Long‑term tenant (Northwest Medical Group) with lease through October 2030 and renewal options, ensuring secure cash flow.; Rental escalations of 2% per annum, ensuring increasing returns.; Located within a dominant regional healthcare network (Northwest Health) serving over 700,000 people.
