Northbrook Office Building Investment
For Sale
Contact for pricing
Pending
1220 Meadow Rd, Northbrook, IL 60062
Three-story office building in downtown Northbrook, 94% occupied.
Property Size16,659 SF
Lot Size1.00 Acre
Days on Market773
Property Features for 1220 Meadow Rd
General Information
Standard status
Pending
Size
16,659 SF
Lot size
1.00 Acre
Property subtype
Retail, Office
Occupancy
90%
Lease Type
Modified Gross
Net Operating Income
$236,309
Building Details
Year Built
1979
Stories
3
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Chicago Downtown
Listed By:
John Abuja CCIM, SIOR · License #IL 471.007675
Source:
Crexi
Added: Jul 11, 2024
Changed: Aug 14
Last Checked: Aug 21 at 10:08PM
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 - Chicago Downtown
Investment Insights
Based on property information with market context.
This three-story office building, totaling 18,000 square feet, is situated on almost one acre of land in downtown Northbrook, Illinois. Currently 94% occupied, the building features a diverse tenant mix, including five dental and orthodontic practices, a Huntington Bank retail lobby, and a local jewelry store. The property is located steps away from the Northbrook commuter rail station, village hall, the Northbrook library, and various restaurants and retailers. Ample parking is available on the north, west, and south sides of the building, with additional parking along the eastern Meadow Road frontage. Basement storage is available for rent to the building’s tenants. The single vacant suite, comprising 6% of the leasable area, is move-in-ready medical space with sinks and corner windows. Ownership is currently entertaining RFPs for a potential new tenant, which would make the building 100% occupied. The location in downtown Northbrook may also be viewed as a long-term covered land play.
Key Highlights
- Prime downtown Northbrook location, steps from commuter rail, village hall, library, restaurants and retailers.
- Strong and stable tenant base with longstanding dental/orthodontic practices and a Huntington Bank branch.
- High occupancy rate of 94% with potential to reach 100% occupancy with a new tenant for the vacant medical suite.
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
$132,239
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
4.48%
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%
$2,644,780
$2.6M
Cap Rate 7%
$1,889,129
$1.9M
Cap Rate 9%
$1,469,322
$1.5M
Market Conditions
NOI Build-Up for 16,659 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
$209.9K $12.60/SF
− Vacancy
−$33.6K −$2.02/SF
EGI
$176.3K $10.58/SF
− OpEx
−$44.1K −$2.65/SF
NOI
$132.2K $7.94/SF
Area
Adams County, IL
Vacancy
16.00%
Lease Rate
$12.60 /SF/Yr
Expense Ratio
25.00%
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%
$2,644,780
Cap Rate 7%
$1,889,129
Cap Rate 9%
$1,469,322
Alternative Uses
Best Use
Office B
$1.89M
$1.65M – $2.20M
NOI $132,239 @ 7.0% cap · market cap 4.48%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$3.33M
$2.91M – $3.88M
NOI $232,951 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
248
Businesses Nearby
Explore this area
Business Placement
Demographics for 60062, IL
42,751
Population
17,892
Households
2.4
Avg Household Size
48
Median Age
71%
College-Educated
96%
High-School Grad
18.9 sq mi
ZIP Area
2,262
Density / Sq Mi
$142,759
Median Household Income
$77,188
Median Earnings
$1,921
Median Rent
$625,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Three-story office building in downtown Northbrook, 94% occupied.
Where is this office building located?
The property is located at 1220 Meadow Rd Northbrook, IL.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Prime downtown Northbrook location, steps from commuter rail, village hall, library, restaurants and retailers.; Strong and stable tenant base with longstanding dental/orthodontic practices and a Huntington Bank branch.; High occupancy rate of 94% with potential to reach 100% occupancy with a new tenant for the vacant medical suite.
