Building Details

Year Built 1909

Stories 2

Listing Agency: RE/MAX REALTY ASSOCIATES-CHA j***@thejillhessteam.com Show Phone

Listed By: Jill Hess · License #475167225 Show Phone

Source: Compass

Added: Mar 27 Changed: Aug 30 Last Checked: Aug 30 at 2:25PM

Report an Issue

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 RE/MAX REALTY ASSOCIATES-CHA

Investment Insights

Based on property information with market context.

The 2,733-square-foot mixed-use property combines an operating salon, retail area, private med spa, and an upstairs residential unit. The main level includes exposed brick, luxury vinyl plank flooring, two guest bathrooms, a laundry area, a treatment room, reception and waiting areas, sitting space, and a kitchen. A three-bedroom apartment occupies the second floor, with new windows, a large eat-in kitchen, separate furnace, tankless water heater, and stacked front-loading washer and dryer.

Built in 1909 and substantially rehabilitated, the building retains historic interior character while incorporating updated finishes and mechanical systems. Parking options include street parking, rear alley access, and a private space outside the rear entrance. The combination of commercial operations and residential accommodation supports multiple uses within one property.

Key Highlights

• 2,733 SF mixed‑use building with commercial space and a three‑bedroom apartment
• Main level configured for salon, retail, and private med spa operations
• Three‑bedroom upstairs apartment with new windows and large eat‑in kitchen

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

$23,106

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

5.78%

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%

$462,120 $462.1K

Cap Rate 7%

$330,086 $330.1K

Cap Rate 9%

$256,733 $256.7K

Market Conditions

NOI Build-Up for 2,733 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

$36.1K $13.20/SF

− Vacancy

−$3.1K −$1.12/SF

EGI

$33.0K $12.08/SF

− OpEx

−$9.9K −$3.62/SF

NOI

$23.1K $8.45/SF

Area

Champaign County, IL

Vacancy

8.50%

Lease Rate

$13.20 /SF/Yr

Expense Ratio

30.00%

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%

$462,120

Cap Rate 7%

$330,086

Cap Rate 9%

$256,733

Alternative Uses

Best Use

Retail

$330.1K

$288.8K – $385.1K (±1% cap)

NOI $23,106 @ 7.0% cap · market cap 5.78%

Second Best

Apartment 5plus

$301.1K

$263.5K – $351.3K (±1% cap)

NOI $21,077 @ 7.0% cap · market cap 5.27%

Theoretical Best

Office A

$568.6K

$497.5K – $663.4K (±1% cap)

NOI $39,801 @ 7.0% cap · market cap 9.95%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storefront properties

Suggested Use

Top Pick Building Supply Electrical Service Hair Salon Storage Facility Big Box & Wholesale Store Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

81

Businesses Nearby

Explore this area Business Placement

Demographics for 61864, IL

1,637

Population

595

Households

2.8

Avg Household Size

41

Median Age

29%

College-Educated

91%

High-School Grad

22.9 sq mi

ZIP Area

71

Density / Sq Mi

$91,827

Median Household Income

$51,635

Median Earnings

$1,063

Median Rent

$203,600

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Mixed-use property - Rehabilitated commercial space with salon, med spa, retail areas, and a three-bedroom apartment above.

Where is this mixed-use property located?

The property is located at 106 Washington Street Philo, IL.

What is the asking price?

The asking price for this property is $400,000.

What are key features of this property?

This property features: 2,733 SF mixed‑use building with commercial space and a three‑bedroom apartment; Main level configured for salon, retail, and private med spa operations; Three‑bedroom upstairs apartment with new windows and large eat‑in kitchen