Hardee’s Restaurant Net
For Sale
Contact for pricing
Pending
108 North 4th Street, Chillicothe, IL 61523
20-year net lease commenced August 2022 with renewal options and scheduled rent increases.
Property Size3,415 SF
Days on Market53
Property Features for 108 North 4th Street
General Information
Standard status
Pending
Size
3,415 SF
Property subtype
Retail
Building Details
Year Built
2005
Listing Agency:
Secure Net Lease
Listed By:
Russell Smith · License #587553
Source:
Crexi
Added: Jun 15
Changed: Jul 10
Last Checked: Aug 6 at 5:28AM
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 Secure Net Lease
Investment Insights
Based on property information with market context.
This single-tenant Hardee’s restaurant is offered as a long-term net lease investment. Rent commenced in August 2022 under a 20-year net lease structure, with four additional five-year renewal options. The lease also provides for 10% rental increases every five years. The lease is guaranteed by LBE Holdings, and the property is being operated by TriStar Ventures, LLC.
The property is located on N 4th Street with reported frontage of 15,060+ VPD, right off the Illinois River and Illinois Route 29. It is approximately 15 miles north of Downtown Peoria, 100 miles southwest of Chicago, and 150 miles northeast of St. Louis. The broader region is described as a multi-county area centered along the Illinois River, including major employers such as Caterpillar.
For buyers and investors seeking a restaurant net lease, the structure includes a guaranteed tenant and multiple renewal options, with scheduled rent step-ups over the lease term. The operator’s profile is supported in the offering materials, including TriStar Ventures operating 26 units throughout IL and IN, and the CKE Restaurant system scale referenced for Hardee’s franchise operations. The rent-to-sales ratio cited in the remarks is 8.63%.
The property is located on N 4th Street with reported frontage of 15,060+ VPD, right off the Illinois River and Illinois Route 29. It is approximately 15 miles north of Downtown Peoria, 100 miles southwest of Chicago, and 150 miles northeast of St. Louis. The broader region is described as a multi-county area centered along the Illinois River, including major employers such as Caterpillar.
For buyers and investors seeking a restaurant net lease, the structure includes a guaranteed tenant and multiple renewal options, with scheduled rent step-ups over the lease term. The operator’s profile is supported in the offering materials, including TriStar Ventures operating 26 units throughout IL and IN, and the CKE Restaurant system scale referenced for Hardee’s franchise operations. The rent-to-sales ratio cited in the remarks is 8.63%.
Key Highlights
- 20‑year net lease commenced August 2022 with (4) 5‑year renewal options
- Lease includes scheduled 10% rental increases every 5 years
- Building year built: 2005
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
$40,938
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
3.77%
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%
$818,760
$818.8K
Cap Rate 7%
$584,829
$584.8K
Cap Rate 9%
$454,867
$454.9K
Market Conditions
NOI Build-Up for 3,415 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
$58.2K $17.04/SF
− Vacancy
−$3.6K −$1.06/SF
EGI
$54.6K $15.98/SF
− OpEx
−$13.6K −$4.00/SF
NOI
$40.9K $11.99/SF
Area
Peoria County, IL
Vacancy
6.20%
Lease Rate
$17.04 /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%
$818,760
Cap Rate 7%
$584,829
Cap Rate 9%
$454,867
Alternative Uses
Best Use
Specialty Retail
$584.8K
$511.7K – $682.3K
NOI $40,938 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$2.99M
$2.61M – $3.49M
NOI $209,119 @ 7.0% cap · market cap 19.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
232
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 61523, IL
10,951
Population
4,773
Households
2.3
Avg Household Size
44
Median Age
27%
College-Educated
96%
High-School Grad
53.3 sq mi
ZIP Area
205
Density / Sq Mi
$74,100
Median Household Income
$45,229
Median Earnings
$907
Median Rent
$151,600
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?
Conventional restaurant - 20-year net lease commenced August 2022 with renewal options and scheduled rent increases.
Where is this conventional restaurant located?
The property is located at 108 North 4th Street Chillicothe, IL.
What is the asking price?
The asking price for this property is $1,086,000.
What are key features of this property?
This property features: 20‑year net lease commenced August 2022 with (4) 5‑year renewal options; Lease includes scheduled 10% rental increases every 5 years; Building year built: 2005
