Turnkey Restaurant and
For Sale
$1,600,000
5805 N Knoxville Avenue, Peoria, IL 61614
Business Opportunity, Peoria, IL
Property Size6,779 SF
Lot Size0.68 Acres
Price / SF$236.02
Days on Market268
Property Features for 5805 N Knoxville Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Knoxville Ave to the park entrance.
Subdivision
Peoria
Standard status
Active
APN
1416376004
Lot size
0.68 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
16528
Utilities
Cooling system
Central Air
Building Details
Floors in Building
2
Listing Agency:
BHHS Central Illinois, REALTORS · Berkshire Hathaway HomeServices
(309) 663-7653
Listed By:
Brandon Shaffer · License #471019606
(309) 663-7653
Added: Dec 1, 2025
Changed: Aug 19
Last Checked: Aug 26 at 2:06AM
MLS# 12510880
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 5805 N Knoxville Avenue in Peoria, IL, this turnkey hospitality property combines a full-service dining operation with a popular bar component and a thriving take-away market. The building offers approximately 6,779 square feet of finished space, situated on roughly 29,620 square feet of property. A separate cafe/market entrance supports breakfast and coffee service, along with baked goods, deli items, and prepared meals. The facility is described as completely remodeled and updated, with fixtures, inventory, supplies, recipes, and furniture included to support an owner stepping in ready to operate.
The operation includes multiple revenue streams such as dine-in service, bar sales, grab-and-go offerings, and established catering/large group and corporate capabilities. Parking is provided for 100+ vehicles. The property is positioned within a well-traveled Peoria park setting with consistent activity from families, walkers, outdoor enthusiasts, and visitors attending community events.
A pre-negotiated long-term lease is reported to be in place with options secured through 2038, intended to provide stability and predictable overhead.
The operation includes multiple revenue streams such as dine-in service, bar sales, grab-and-go offerings, and established catering/large group and corporate capabilities. Parking is provided for 100+ vehicles. The property is positioned within a well-traveled Peoria park setting with consistent activity from families, walkers, outdoor enthusiasts, and visitors attending community events.
A pre-negotiated long-term lease is reported to be in place with options secured through 2038, intended to provide stability and predictable overhead.
Key Highlights
- Hospitality business with 6,779 SF finished space on 29,620 SF property
- Multiple revenue streams: full‑service dining, bar sales, grab‑and‑go market, and established catering/large group & corporate capabilities
- Separate cafe/market entrance for breakfast service, coffee, baked goods, deli items, and prepared meals
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
$86,941
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
5.43%
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%
$1,738,820
$1.7M
Cap Rate 7%
$1,242,014
$1.2M
Cap Rate 9%
$966,011
$966.0K
Market Conditions
NOI Build-Up for 6,779 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
$122.0K $18.00/SF
− Vacancy
−$6.1K −$0.90/SF
EGI
$115.9K $17.10/SF
− OpEx
−$29.0K −$4.27/SF
NOI
$86.9K $12.83/SF
Area
Peoria, IL
Vacancy
5.00%
Lease Rate
$18.00 /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%
$1,738,820
Cap Rate 7%
$1,242,014
Cap Rate 9%
$966,011
Alternative Uses
Best Use
Specialty Retail
$1.24M
$1.09M – $1.45M
NOI $86,941 @ 7.0% cap · market cap 5.43%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$5.93M
$5.19M – $6.92M
NOI $415,114 @ 7.0% cap · market cap 25.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
849
Businesses Nearby
3k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 100%
Sweet Cece's
Dining
2,537 visits/mo
0.4 miles
Demographics for 61614, IL
27,119
Population
13,870
Households
2
Avg Household Size
41
Median Age
46%
College-Educated
97%
High-School Grad
12.0 sq mi
ZIP Area
2,260
Density / Sq Mi
$68,379
Median Household Income
$46,540
Median Earnings
$948
Median Rent
$169,700
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Multi-revenue restaurant with bar and take-away, plus a separate cafe/market entrance, fully remodeled and ready to operate.
Where is this conventional restaurant located?
The property is located at 5805 N Knoxville Avenue Peoria, IL.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Hospitality business with 6,779 SF finished space on 29,620 SF property; Multiple revenue streams: full‑service dining, bar sales, grab‑and‑go market, and established catering/large group & corporate capabilities; Separate cafe/market entrance for breakfast service, coffee, baked goods, deli items, and prepared meals
