Building Details

Tenancy Single

Listing Agency: Ripco Real Estate

Listed By: Ari Ravi · License #SL- 3210827 Show Phone

Source: Crexi

Added: Sep 23 Changed: Sep 26 Last Checked: Sep 26 at 3:17PM

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Investment Insights

Based on property information with market context.

This freestanding drug store contains ±14,820 square feet on a ±1.35-acre parcel. Walgreen Co. is the direct corporate tenant, with 9.5 years remaining on an absolute NNN lease. The tenant pays real estate taxes and carries property and liability insurance, while also handling maintenance and replacement of the roof, structure, parking lot, and other property components. The arrangement has no CAM, reconciliations, or management fee.

At the southwest corner of US Highway 40 and Walnut Street in Highland, Illinois, the property is about 4.2 road miles from Interstate 70 access via Illinois Route 143. The three-mile trade area has 12,311 residents.

Key Highlights

• Freestanding drug store with ±14,820 square feet on ±1.35 acres
• Absolute NNN lease to Walgreen Co., with 9.5 years remaining
• Tenant handles taxes, insurance, and maintenance of the roof, structure, parking lot, and other property components

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

$181,877

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

5.02%

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%

$3,637,540 $3.6M

Cap Rate 7%

$2,598,243 $2.6M

Cap Rate 9%

$2,020,856 $2.0M

Market Conditions

NOI Build-Up for 14,820 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

$266.8K $18.00/SF

− Vacancy

−$6.9K −$0.47/SF

EGI

$259.8K $17.53/SF

− OpEx

−$77.9K −$5.26/SF

NOI

$181.9K $12.27/SF

Area

Madison County, IL

Vacancy

2.60%

Lease Rate

$18.00 /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%

$3,637,540

Cap Rate 7%

$2,598,243

Cap Rate 9%

$2,020,856

Alternative Uses

Best Use

Retail

$2.60M

$2.27M – $3.03M (±1% cap)

NOI $181,877 @ 7.0% cap · market cap 5.02%

Second Best

Specialty Retail

$2.51M

$2.20M – $2.93M (±1% cap)

NOI $175,763 @ 7.0% cap · market cap 4.86%

Theoretical Best

Office A

$4.04M

$3.53M – $4.71M (±1% cap)

NOI $282,766 @ 7.0% cap · market cap 7.81%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Drug stores

Suggested Use

Top Pick Plumbing Service Electrical Service (Bike/Boat/Book/etc) Store Locksmith Carpet & Flooring Store Cafe & Coffee Shop

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

Lease Details

Single-tenant

Tenancy

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

626

Businesses Nearby

106k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Dining 48% Shops & Services 37% Apparel 8% Home Improvements & Furnishings 5%

McDonald's Dining

20,604 visits/mo 0.4 miles

Circle K Shops & Services

18,785 visits/mo 0.3 miles

Scooter's Coffee Dining

9,412 visits/mo 0.5 miles

SONIC Drive In Dining

8,694 visits/mo 0.3 miles

Hardee's Dining

6,728 visits/mo 0.1 miles

Demographics for 62249, IL

16,052

Population

7,317

Households

2.2

Avg Household Size

42

Median Age

36%

College-Educated

96%

High-School Grad

88.7 sq mi

ZIP Area

181

Density / Sq Mi

$88,986

Median Household Income

$53,122

Median Earnings

$779

Median Rent

$220,000

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 drug stores located? What is the asking price? Find similar properties What are key features of this property?

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Similar Off Market Nearby

• Highland Nutrition Center — 320 Walnut St, Highland, IL 62249
• Walgreens Pharmacy — 110 Walnut St, Highland, IL 62249
• CVS Pharmacy — 12630 IL-143, Highland, IL 62249
• CVS — 12630 IL-143, Highland, IL 62249
• Susan Mccray, RPH — 110 Walnut St, Highland, IL 62249

Frequently Asked Questions

What type of property is this?

Drug store - Walgreen Co. occupies the freestanding store under an absolute NNN lease with tenant responsibility for property expenses and maintenance.

Where is this drug store located?

The property is located at 110 Walnut Street Highland, IL.

What is the asking price?

The asking price for this property is $3,620,000.

What are key features of this property?

This property features: Freestanding drug store with ±14,820 square feet on ±1.35 acres; Absolute NNN lease to Walgreen Co., with 9.5 years remaining; Tenant handles taxes, insurance, and maintenance of the roof, structure, parking lot, and other property components