Prime Peoria Heights Development
For Sale
$950,000
1001 E WAR MEMORIAL Drive Peoria, Peoria Heights, IL 61616
1.41 acres in Peoria Heights with retail building and development potential.
Property Size5,776 SF
Price / SF$164.47
Days on Market328
Property Features for 1001 E WAR MEMORIAL Drive Peoria
General Information
Standard status
Active
Size
5,776 SF
Class
A
Property subtype
Shopping Center / Retail
Zoning
B-2
Amenities
4 Parcel Sale (1.41 Acres) Zoned B-2
Multi-tenant retail building on site
TIF District (Peoria Heights TIF 2) and an Enterprise Zone (Peoria Urban Enterprise Zone #8)
Building Details
Building Size
5,776 SF
Listing Agency:
RE/MAX
(309) 687-5000
Listed By:
Jessica Ball · License #475175281
Source:
Remaxcommercial
Added: Sep 25, 2025
Changed: Aug 13
Last Checked: Aug 18 at 4:14AM
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
Investment Insights
Based on property information with market context.
This property presents an excellent development opportunity on E War Memorial Drive (US Hwy 150) in Peoria Heights. The four parcels, totaling 1.41 acres, are zoned B-2. The property is located within both a TIF District (Peoria Heights TIF 2) and an Enterprise Zone (Peoria Urban Enterprise Zone #8). Currently, there are two buildings on the property. One is a 5026 sq ft retail/office building that can be divided for multiple tenants or used as a single-tenant business. The other is an oversized garage located at the rear of the property. The property features two hard corners with multiple road accesses and daily traffic counts exceeding 25,000. This location is suitable for a gas station, drive-thru, restaurant, or larger retail operation.
Key Highlights
- 1.41 acres of land zoned B‑2 on E War Memorial Drive (US Hwy 150) offering excellent development opportunity.
- Located in both a TIF District (Peoria Heights TIF 2) and an Enterprise Zone (Peoria Urban Enterprise Zone #8).
- High traffic counts of over 25,000 vehicles daily.
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
$48,208
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
5.07%
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%
$964,160
$964.2K
Cap Rate 7%
$688,686
$688.7K
Cap Rate 9%
$535,644
$535.6K
Market Conditions
NOI Build-Up for 5,776 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
$74.9K $12.96/SF
− Vacancy
−$6.0K −$1.04/SF
EGI
$68.9K $11.92/SF
− OpEx
−$20.7K −$3.58/SF
NOI
$48.2K $8.35/SF
Area
Peoria County, IL
Vacancy
8.00%
Lease Rate
$12.96 /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%
$964,160
Cap Rate 7%
$688,686
Cap Rate 9%
$535,644
Alternative Uses
Best Use
Retail
$688.7K
$602.6K – $803.5K
NOI $48,208 @ 7.0% cap · market cap 5.07%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$5.05M
$4.42M – $5.89M
NOI $353,695 @ 7.0% cap · market cap 37.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
470
Businesses Nearby
87k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 58%
Shops & Services 40%
Home Improvements & Furnishings 2%
McDonald's
Dining
23,306 visits/mo
0.1 miles
Phillips 66
Shops & Services
18,674 visits/mo
0.3 miles
Starbucks
Dining
13,572 visits/mo
0.1 miles
Dunkin' Donuts
Dining
7,510 visits/mo
0.2 miles
Dollar General
Shops & Services
7,149 visits/mo
0.2 miles
Demographics for 61616, IL
5,966
Population
3,119
Households
1.9
Avg Household Size
38
Median Age
27%
College-Educated
96%
High-School Grad
2.5 sq mi
ZIP Area
2,386
Density / Sq Mi
$62,083
Median Household Income
$36,604
Median Earnings
$921
Median Rent
$118,000
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?
Shopping center - 1.41 acres in Peoria Heights with retail building and development potential.
Where is this shopping center located?
The property is located at 1001 E WAR MEMORIAL Drive Peoria Peoria Heights, IL.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 1.41 acres of land zoned B‑2 on E War Memorial Drive (US Hwy 150) offering excellent development opportunity.; Located in both a TIF District (Peoria Heights TIF 2) and an Enterprise Zone (Peoria Urban Enterprise Zone #8).; High traffic counts of over 25,000 vehicles daily.
