Freestanding Restaurant with
For Sale
$1,350,000
720 E Rand Road, Mount Prospect, IL 60056
Commercial Sale, Mount Prospect, IL
Property Size2,533 SF
Lot Size0.54 Acres
Price / SF$532.96
Days on Market33
Property Features for 720 E Rand Road
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
RTAIL
Directions
Central and Rand Road in Mount prospect, north to address on Rand Road, east side of the street, in front of Menards.
Subdivision
Mount Prospect
Standard status
Active
APN
03344070140000
Lot size
0.54 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
39702
Utilities
Utilities
Cable Available
Cooling system
Central Air
Building Details
Year built
1994
Floors in Building
2
Number of units
1
Flooring type
Concrete, Tile, Varies
Building materials
Brick, Concrete, Block
Roof type
Membrane
Listing Agency:
RE/MAX At Home · RE/MAX International
(847) 255-1000
Listed By:
Basel Tarabein · License #IL 471008459
(847) 255-1000
Added: Jul 20
Changed: Aug 20
Last Checked: Aug 21 at 9:06AM
MLS# 12705773
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.
Freestanding masonry restaurant offered for sale in turnkey condition, with existing drive-thru capability and a curb cut on Rand Road. The building is approximately 2,533 square feet and sits on an approximately 23,391-square-foot site with about 25 parking spaces. The interior is fully built out and ready for operation, featuring a complete commercial kitchen with black iron exhaust hoods, fire-suppression systems, a walk-in cooler, and included furniture, fixtures, and equipment. Additional improvements noted include a modern facade, updated windows, upgraded rooftop heating and HVAC equipment, tuckpointing, and 200-amp electrical service. The property also includes a second floor, with potential to expand upward or create an outdoor second-floor dining area subject to municipal approval.
The site is located just south of the signalized intersection of Rand Road and Central Road and directly across from Menards. The remarks cite exposure to approximately 17,600 vehicles per day and describe the surrounding area as a major retail and fast-food corridor with nearby retailers including Walmart, Aldi, Subway, Bowlero, Texas Roadhouse, Buona Beef, and Dunkin'.
Zoning is identified in the listing as RTAIL.
The site is located just south of the signalized intersection of Rand Road and Central Road and directly across from Menards. The remarks cite exposure to approximately 17,600 vehicles per day and describe the surrounding area as a major retail and fast-food corridor with nearby retailers including Walmart, Aldi, Subway, Bowlero, Texas Roadhouse, Buona Beef, and Dunkin'.
Zoning is identified in the listing as RTAIL.
Key Highlights
- Freestanding 2,533‑SF masonry restaurant built in 1994 on a 23,391‑SF site in Mount Prospect’s Rand Road retail corridor
- Existing drive‑thru capability with curb cut on Rand Road
- Approx. 25 parking spaces and exposure to approx. 17,600 vehicles per day
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
$42,402
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
3.14%
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%
$848,040
$848.0K
Cap Rate 7%
$605,743
$605.7K
Cap Rate 9%
$471,133
$471.1K
Market Conditions
NOI Build-Up for 2,533 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
$60.8K $24.00/SF
− Vacancy
−$4.3K −$1.68/SF
EGI
$56.5K $22.32/SF
− OpEx
−$14.1K −$5.58/SF
NOI
$42.4K $16.74/SF
Area
Cook County, IL
Vacancy
7.00%
Lease Rate
$24.00 /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%
$848,040
Cap Rate 7%
$605,743
Cap Rate 9%
$471,133
Alternative Uses
Best Use
Specialty Retail
$605.7K
$530.0K – $706.7K
NOI $42,402 @ 7.0% cap · market cap 3.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$874.5K
$765.2K – $1.02M
NOI $61,217 @ 7.0% cap · market cap 4.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
17,600 VPD
Traffic count
Yes
Paved road access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
744
Businesses Nearby
339k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 33%
Dining 18%
Home Improvements & Furnishings 16%
Apparel 16%
Walmart
Superstores
110,749 visits/mo
0.3 miles
Menards
Home Improvements & Furnishings
53,779 visits/mo
0.1 miles
Burlington
Apparel
33,037 visits/mo
0.4 miles
Texas Roadhouse
Dining
30,063 visits/mo
0.4 miles
Aldi
Groceries
28,555 visits/mo
0.4 miles
Demographics for 60056, IL
57,177
Population
23,202
Households
2.5
Avg Household Size
41
Median Age
49%
College-Educated
92%
High-School Grad
10.9 sq mi
ZIP Area
5,246
Density / Sq Mi
$104,168
Median Household Income
$54,158
Median Earnings
$1,456
Median Rent
$376,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Freestanding masonry restaurant with existing drive-thru capability and a fully built-out commercial kitchen for turnkey operation.
Where is this drive through restaurant located?
The property is located at 720 E Rand Road Mount Prospect, IL.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Freestanding 2,533‑SF masonry restaurant built in 1994 on a 23,391‑SF site in Mount Prospect’s Rand Road retail corridor; Existing drive‑thru capability with curb cut on Rand Road; Approx. 25 parking spaces and exposure to approx. 17,600 vehicles per day
