Single-Tenant Medical Office
For Sale
$2,250,000
7310 W Lincoln Hwy, Schererville, IN 46307
Purpose-built outpatient facility occupied by an AA Fitch-rated healthcare system under a net lease.
Property Size13,380 SF
Price / SF$168.16
Days on Market51
Property Features for 7310 W Lincoln Hwy
General Information
Standard status
Active
Size
13,380 SF
Property subtype
Single-Tenant Office Medical
Lease Type
NNN
Amenities
High-Yield Medical Office | Passive Investment: Offered at an Attractive 13.38 Percent CAP Rate, Providing Strong Current Cash Flow Rarely Found with Investment-Grade Credit Tenants
Investment-Grade Corporate Guaranty: Backed by an "AA" Fitch-Rated Healthcare System Operating 12 Hospital Campuses and Over 300 Care Sites Throughout Indiana, Illinois, and Michigan
20-Year Proven Tenant History: Franciscan Has Continuously Occupied the Building Since Its Construction in 2006, Demonstrating the Property's Long-Standing Importance Within the Region
Favorable Triple-Net Structure: Minimal landlord Oversight Required; the Tenant Reimburses for Real Estate Taxes, Insurance, and CAM, Allowing for an optimized Passive Investment Structure
High Exposure Commuter Corridor: The Property Is Strategically Positioned Along U.S. Highway 30 (Lincoln Highway), Boasting exceptional Visibility and Exposure to over 40,000 Plus Vehicles per Day from Cars Traversing Between US-41 & Interstate 65
Building Details
Building Size
13,380 SF
Listing Agency:
Marcus & Millichap - Indianapolis
(317) 218-5324
Listed By:
David Klink · License #License(s): IN: RB14049256
(317) 218-5324
Source:
Marcusmillichap
Added: Jul 11
Changed: Aug 29
Last Checked: Aug 29 at 10:07PM
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 Marcus & Millichap - Indianapolis
Investment Insights
Based on property information with market context.
The 13,380-square-foot medical office facility was constructed in 2006 and is occupied by Franciscan Alliance, Inc. The property operates as the Franciscan Physician Network Schererville Health Center, supporting Family Medicine, Internal Medicine, and Obstetrics & Gynecology services. Its single-tenant configuration and net-lease structure provide a focused medical office investment profile.
Located at 7310 W Lincoln Hwy in Schererville, Indiana, the building has served Franciscan's outpatient network since completion. The tenant is backed by an AA Fitch rating, and the lease includes a remaining term. The offering reflects a 13.38% cap rate during that remaining lease period.
Located at 7310 W Lincoln Hwy in Schererville, Indiana, the building has served Franciscan's outpatient network since completion. The tenant is backed by an AA Fitch rating, and the lease includes a remaining term. The offering reflects a 13.38% cap rate during that remaining lease period.
Key Highlights
- 13,380‑square‑foot medical office facility constructed in 2006
- Single‑tenant net lease occupied by Franciscan Alliance, Inc.
- Franciscan Physician Network Schererville Health Center operates at the property
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
$187,277
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
8.32%
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%
$3,745,540
$3.7M
Cap Rate 7%
$2,675,386
$2.7M
Cap Rate 9%
$2,080,856
$2.1M
Market Conditions
NOI Build-Up for 13,380 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
$346.8K $25.92/SF
− Vacancy
−$34.7K −$2.59/SF
EGI
$312.1K $23.33/SF
− OpEx
−$124.9K −$9.33/SF
NOI
$187.3K $14.00/SF
Area
Lake County, IN
Vacancy
10.00%
Lease Rate
$25.92 /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%
$3,745,540
Cap Rate 7%
$2,675,386
Cap Rate 9%
$2,080,856
Alternative Uses
Best Use
Healthcare Medical
$2.68M
$2.34M – $3.12M
NOI $187,277 @ 7.0% cap · market cap 8.32%
Second Best
Office B
$2.42M
$2.12M – $2.83M
NOI $169,720 @ 7.0% cap · market cap 7.54%
Theoretical Best
Specialty Retail
$3.74M
$3.27M – $4.36M
NOI $261,462 @ 7.0% cap · market cap 11.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
242
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46307, IN
69,248
Population
26,081
Households
2.7
Avg Household Size
41
Median Age
33%
College-Educated
94%
High-School Grad
87.2 sq mi
ZIP Area
794
Density / Sq Mi
$102,118
Median Household Income
$50,612
Median Earnings
$1,308
Median Rent
$293,500
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 - Purpose-built outpatient facility occupied by an AA Fitch-rated healthcare system under a net lease.
Where is this medical office space located?
The property is located at 7310 W Lincoln Hwy Schererville, IN.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: 13,380‑square‑foot medical office facility constructed in 2006; Single‑tenant net lease occupied by Franciscan Alliance, Inc.; Franciscan Physician Network Schererville Health Center operates at the property
