Mixed-Use Property with
For Sale
$1,450,000
1116-1122 North Diamond Lake Road, Mundelein, IL 60060
Includes an operating restaurant, leased convenience store, and two residential units with supporting site improvements.
Property Size12,875 SF
Days on Market91
Property Features for 1116-1122 North Diamond Lake Road
General Information
Standard status
Active
Size
12,875 SF
Property subtype
Retail
Restaurant
Equipment Included
Yes
Liquor License
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Multifamily Units
2
Amenities
off street parking
storage shed
Building Details
Building Size
12,875 SF
Listing Agency:
Caton Commercial
(630) 209-8029
Listed By:
Beth Petri · License #475174514
Source:
Catoncommercial
Added: Jun 1
Changed: Aug 30
Last Checked: Aug 30 at 2:47PM
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 Caton Commercial
Investment Insights
Based on property information with market context.
This mixed-use property combines an active, fully equipped restaurant with a convenience store and two residential units. Furniture, fixtures, and equipment are included, along with off-street parking and a storage shed. The restaurant’s gaming and liquor licenses are transferable subject to a background check, with no name change required.
The convenience store is fully leased, providing an additional income component within the property. The restaurant has operated under family ownership for over 40 years in the Mundelein area, and the current operation is positioned for expanded hours and participation in Village events.
The convenience store is fully leased, providing an additional income component within the property. The restaurant has operated under family ownership for over 40 years in the Mundelein area, and the current operation is positioned for expanded hours and participation in Village events.
Key Highlights
- Fully equipped active restaurant with FF&E included
- Fully leased convenience store included in the sale
- Two residential units included
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
$133,256
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
9.19%
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%
$2,665,120
$2.7M
Cap Rate 7%
$1,903,657
$1.9M
Cap Rate 9%
$1,480,622
$1.5M
Market Conditions
NOI Build-Up for 12,875 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
$231.8K $18.00/SF
− Vacancy
−$18.5K −$1.44/SF
EGI
$213.2K $16.56/SF
− OpEx
−$80.0K −$6.21/SF
NOI
$133.3K $10.35/SF
Area
Lake County, IL
Vacancy
8.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$2,665,120
Cap Rate 7%
$1,903,657
Cap Rate 9%
$1,480,622
Alternative Uses
Best Use
Specialty Retail
$3.39M
$2.96M – $3.95M
NOI $237,011 @ 7.0% cap · market cap 16.35%
Second Best
Apartment 5plus
$2.27M
$1.99M – $2.65M
NOI $158,903 @ 7.0% cap · market cap 10.96%
Theoretical Best
Office A
$4.45M
$3.89M – $5.19M
NOI $311,161 @ 7.0% cap · market cap 21.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
88
Businesses Nearby
Explore this area
Business Placement
Demographics for 60060, IL
37,599
Population
13,827
Households
2.7
Avg Household Size
40
Median Age
43%
College-Educated
90%
High-School Grad
23.2 sq mi
ZIP Area
1,621
Density / Sq Mi
$110,463
Median Household Income
$52,550
Median Earnings
$1,552
Median Rent
$299,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Includes an operating restaurant, leased convenience store, and two residential units with supporting site improvements.
Where is this mixed-use property located?
The property is located at 1116-1122 North Diamond Lake Road Mundelein, IL.
What is the asking price?
The asking price for this property is $1,450,000.
What are key features of this property?
This property features: Fully equipped active restaurant with FF&E included; Fully leased convenience store included in the sale; Two residential units included
