Mixed-Use Property with Outdoor
New
For Sale
$425,000
5896 State RT 17 Hwy, Kankakee, IL 60901
Business Opportunity, Kankakee, IL
Property Size3,500 SF
Lot Size0.39 Acres
Price / SF$121.43
Days on Market6
Property Features for 5896 State RT 17 Hwy
General Information
Property type
Commercial Sale
Property subtype
Other
Standard status
Active
APN
121806203032
Size
3,500 SF
Lot size
0.39 Acres
Amenities
outdoor entertainment space
beer garden
stage
porch
rear deck
fenced gathering area
multiple televisions
Listing Agency:
Z REALTY GROUP CO
(815) 304-5384
Listed By:
Zaneta Sanders · License #471018950
(815) 304-5384
Added: Aug 18
Changed: Aug 22
Last Checked: Aug 23 at 3:06AM
MLS# 11939876
Copyright © 2026 My State MLS. 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.
This mixed-use property combines an established hospitality operation with two apartments and a substantial outdoor gathering component. The main two-story building contains approximately 3,024 square feet and includes a bar, service areas, functional kitchen and food-preparation space, seating for approximately 41–50 guests, multiple televisions, and an interior gaming and entertainment area. Outdoor improvements include a beer garden, stage and entertainment area, porch, rear deck, and fenced gathering space.
The property fronts Illinois Route 17 in Kankakee, with approximately 6,450 vehicles per day based on the 2025 IDOT Annual Average Daily Traffic count for the roadway segment serving the site. It is approximately 4 miles east of the I-57 Kankakee interchange, connecting the property with Kankakee and nearby communities. Any gaming equipment, licenses, business assets, or related rights included in a sale require verification and agreement-specific confirmation.
The property fronts Illinois Route 17 in Kankakee, with approximately 6,450 vehicles per day based on the 2025 IDOT Annual Average Daily Traffic count for the roadway segment serving the site. It is approximately 4 miles east of the I-57 Kankakee interchange, connecting the property with Kankakee and nearby communities. Any gaming equipment, licenses, business assets, or related rights included in a sale require verification and agreement-specific confirmation.
Key Highlights
- Mixed‑use property with 2 apartments and established bar, tavern, and lounge configuration
- Main two‑story building contains approximately 3,024 square feet
- Hospitality area includes kitchen, food‑preparation space, bar, service areas, and seating for approximately 41–50 guests
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
$28,563
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
6.72%
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%
$571,260
$571.3K
Cap Rate 7%
$408,043
$408.0K
Cap Rate 9%
$317,367
$317.4K
Market Conditions
NOI Build-Up for 3,500 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
$49.1K $14.04/SF
− Vacancy
−$3.4K −$0.98/SF
EGI
$45.7K $13.06/SF
− OpEx
−$17.1K −$4.90/SF
NOI
$28.6K $8.16/SF
Area
Kankakee County, IL
Vacancy
7.00%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
37.50%
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%
$571,260
Cap Rate 7%
$408,043
Cap Rate 9%
$317,367
Alternative Uses
Best Use
Apartment 5plus
$2.46M
$2.15M – $2.87M
NOI $172,310 @ 7.0% cap · market cap 40.54%
Second Best
Mixed Use
$408.0K
$357.0K – $476.1K
NOI $28,563 @ 7.0% cap · market cap 6.72%
Theoretical Best
Multifamily LT 5
$2.82M
$2.47M – $3.29M
NOI $197,650 @ 7.0% cap · market cap 46.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
16
Businesses Nearby
Explore this area
Business Placement
Demographics for 60901, IL
33,628
Population
15,357
Households
2.2
Avg Household Size
39
Median Age
16%
College-Educated
86%
High-School Grad
97.3 sq mi
ZIP Area
346
Density / Sq Mi
$54,557
Median Household Income
$36,244
Median Earnings
$1,020
Median Rent
$143,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two apartments accompany an established hospitality layout with kitchen, bar, seating, and entertainment areas.
Where is this mixed-use property located?
The property is located at 5896 State RT 17 Hwy Kankakee, IL.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Mixed‑use property with 2 apartments and established bar, tavern, and lounge configuration; Main two‑story building contains approximately 3,024 square feet; Hospitality area includes kitchen, food‑preparation space, bar, service areas, and seating for approximately 41–50 guests
