Building Details

Building Size 4,500 SF

Year Built 2014

Listing Agency: RE/MAX j***@remax.net Show Phone

Listed By: Justin Ball · License #475175281

Source: Remaxcommercial

Added: Sep 25, 2025 Changed: Aug 8 Last Checked: Aug 18 at 4:14AM

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Investment Insights

Based on property information with market context.

This 4,500 SF unit is located in an attractive retail center on Route 91, directly across from Dunlap High School, benefiting from high traffic. The property presents an opportunity for a business owner to occupy the building while generating investment income from other units. Alternatively, it can be leased out as a pure investment. Units A and C are available for lease, while Unit B is currently leased to Debbie's Slots and Gaming Lounge. There are county approved plans to add another building and additional parking to the property on the West side for an additional 3,000 Sq. Ft. of building. Financial information on the leased unit is available with a signed Non-Disclosure Agreement.

Key Highlights

• High‑traffic location on Route 91, directly across from Dunlap High School.
• 4,500 SF attractive retail center with investment income potential from multiple units.
• Opportunity for business owner to occupy and generate income or lease as a pure investment.

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

$37,558

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

7.59%

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%

$751,160 $751.2K

Cap Rate 7%

$536,543 $536.5K

Cap Rate 9%

$417,311 $417.3K

Market Conditions

NOI Build-Up for 4,500 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

$58.3K $12.96/SF

− Vacancy

−$4.7K −$1.04/SF

EGI

$53.7K $11.92/SF

− OpEx

−$16.1K −$3.58/SF

NOI

$37.6K $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%

$751,160

Cap Rate 7%

$536,543

Cap Rate 9%

$417,311

Alternative Uses

Best Use

Retail

$536.5K

$469.5K – $626.0K (±1% cap)

NOI $37,558 @ 7.0% cap · market cap 7.59%

Second Best

—

—

no second resolved use

Theoretical Best

Multifamily LT 5

$3.94M

$3.44M – $4.59M (±1% cap)

NOI $275,559 @ 7.0% cap · market cap 55.67%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Shopping centers

Suggested Use

Top Pick Electrical Service Plumbing Service Storage Facility Big Box & Wholesale Store Nail Salon Kitchen & Bath Showroom

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

Location Intelligence

Trade Area within ½ mile

75

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 61525, IL

11,433

Population

4,324

Households

2.6

Avg Household Size

36

Median Age

69%

College-Educated

97%

High-School Grad

32.7 sq mi

ZIP Area

350

Density / Sq Mi

$153,300

Median Household Income

$88,125

Median Earnings

$1,167

Median Rent

$314,800

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

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What type of property is this? Where is this shopping centers located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Shopping center - 4,500 SF retail center with investment income potential.

Where is this shopping center located?

The property is located at 407 4TH Street Dunlap, IL.

What is the asking price?

The asking price for this property is $495,000.

What are key features of this property?

This property features: High‑traffic location on Route 91, directly across from Dunlap High School.; 4,500 SF attractive retail center with investment income potential from multiple units.; Opportunity for business owner to occupy and generate income or lease as a pure investment.