Starbucks-Anchored Retail
New
For Sale
$5,615,000
1085 E Lake Cook Rd, Wheeling, IL 60090
Neighborhood retail center with a drive-through anchor and illuminated tenant signage.
Property Size27,232 SF
Price / SF$206.19
Days on Market2
Property Features for 1085 E Lake Cook Rd
General Information
Standard status
Active
Size
27,232 SF
Property subtype
Shopping Strip
Occupancy
100%
Site & Location
Drive-Thru
Yes
Pylon Signage
Yes
Anchor Co-Tenants
Starbucks
Additional Details
Cap Rate
7.75%
Amenities
Well-built, 100% occupied neighborhood retail center in Suburban Chicago located at a signalized intersection on the border of Buffalo Grove and Wheeling
Anchored by a Drive-Thru Starbucks pad, fronting Lake Cook Road, on a separate pin from the shop space tenants
Optimal configuration for neighborhood retail with small suite sizes and shallow depth bays
Attractive entry cap rate of 7.75%, offered at an appealing basis of just over $200 per square foot
Just over 5 Years of Weighted Average Lease Term
Multiple points of ingress and egress, including from the stoplight at the corner of Lake Cook and Lexington
Dense suburban demographics – over 100,000 people live within 3 miles of the site with household incomes in excess of $130,000 annually
Prominent, internally illuminated pylon signage on Lake Cook Road | Exposure to over 30,000 vehicles per day
Building Details
Building Size
27,232 SF
Year Built
1985
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Chicago Downtown
(312) 624-7006
Listed By:
Mitchell Kiven · License #License(s): IL: 475.164486
(312) 624-7006
Source:
Marcusmillichap
Added: Aug 19
Changed: Aug 20
Last Checked: Aug 20 at 9:47AM
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 Marcus & Millichap - Chicago Downtown
Investment Insights
Based on property information with market context.
Lexington Commons is a fee-simple neighborhood retail center anchored by a drive-through Starbucks located on an outparcel. The center offers small, similarly sized suites with internally illuminated channel signage for each tenant, along with an internally illuminated pylon sign at one access point. The property was built in 1985 and has a diversified tenant mix.
The center is positioned at the signalized intersection of Lake Cook and Lexington in Wheeling, Illinois. Current occupancy is 100%, with a weighted average lease term of 5 years. Recent lease extensions and new lease signings have strengthened the tenant roster and support the center’s neighborhood retail profile. The property is offered at a 7.75% cap rate.
The center is positioned at the signalized intersection of Lake Cook and Lexington in Wheeling, Illinois. Current occupancy is 100%, with a weighted average lease term of 5 years. Recent lease extensions and new lease signings have strengthened the tenant roster and support the center’s neighborhood retail profile. The property is offered at a 7.75% cap rate.
Key Highlights
- Drive‑through Starbucks anchor on an outparcel
- 100% occupancy with a 5‑year weighted average lease term
- Signalized intersection of Lake Cook and Lexington
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
$377,985
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
6.73%
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%
$7,559,700
$7.6M
Cap Rate 7%
$5,399,786
$5.4M
Cap Rate 9%
$4,199,833
$4.2M
Market Conditions
NOI Build-Up for 27,232 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
$588.2K $21.60/SF
− Vacancy
−$48.2K −$1.77/SF
EGI
$540.0K $19.83/SF
− OpEx
−$162.0K −$5.95/SF
NOI
$378.0K $13.88/SF
Area
Cook County, IL
Vacancy
8.20%
Lease Rate
$21.60 /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%
$7,559,700
Cap Rate 7%
$5,399,786
Cap Rate 9%
$4,199,833
Alternative Uses
Best Use
Retail
$5.40M
$4.72M – $6.30M
NOI $377,985 @ 7.0% cap · market cap 6.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.40M
$8.23M – $10.97M
NOI $658,138 @ 7.0% cap · market cap 11.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
500
Businesses Nearby
42k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 72%
Shops & Services 28%
Buffalo Wild Wings
Dining
20,395 visits/mo
0.1 miles
Shell
Shops & Services
11,605 visits/mo
0.0 miles
Starbucks
Dining
9,996 visits/mo
0.1 miles
Demographics for 60090, IL
39,017
Population
15,960
Households
2.4
Avg Household Size
39
Median Age
40%
College-Educated
88%
High-School Grad
9.0 sq mi
ZIP Area
4,335
Density / Sq Mi
$83,449
Median Household Income
$45,436
Median Earnings
$1,578
Median Rent
$243,500
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?
Strip mall - Neighborhood retail center with a drive-through anchor and illuminated tenant signage.
Where is this strip mall located?
The property is located at 1085 E Lake Cook Rd Wheeling, IL.
What is the asking price?
The asking price for this property is $5,615,000.
What are key features of this property?
This property features: Drive‑through Starbucks anchor on an outparcel; 100% occupancy with a 5‑year weighted average lease term; Signalized intersection of Lake Cook and Lexington
