Palatine Condo Deconversion
For Sale
$20,000,000
140 W Wood St, Palatine, IL 60067
132-unit condo deconversion opportunity in downtown Palatine, Illinois.
Property Size112,000 SF
Price / SF$178.57
Days on Market272
Property Features for 140 W Wood St
General Information
Standard status
Active
Size
112,000 SF
Property subtype
Multifamily
Building Details
Building Size
112,000 SF
Year Built
1973
Listing Agency:
33 Realty
(773) 899-1334
Listed By:
Sean Connelly · License #475159506
(773) 899-1334
Source:
33realty
Added: Nov 21, 2025
Changed: Aug 9
Last Checked: Aug 20 at 4:52AM
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 33 Realty
Investment Insights
Based on property information with market context.
This 132-unit condo deconversion opportunity is located at 140 Wood Street in Palatine, Illinois. Originally built in 1971 and converted to condos in 2005, the property features a mix of unit sizes, including 44 studios (approximately 369 sq ft), 52 one-bedroom units (645 to 772 sq ft), 24 two-bedroom, one-bathroom units (approximately 910 sq ft), and 12 two-bedroom, two-bathroom units (approximately 1094 sq ft). The property includes 184 exterior parking spots, with 46 rented to the city of Palatine for commuter parking due to its proximity to the Metra Train Line. Situated in downtown Palatine, the location provides convenient access to restaurants, retail, and transportation into Chicago. The building has a pool, gym and storage lockers. The porches have been newly replaced by the association. There are multiple add value options for a new investor. Historic rent restrictions have limited the number of rented units. Units range from original condition to those rehabbed during the 2005 conversion or gut rehabbed by current owners, presenting an opportunity to strategically rehab units and increase rents. The property currently uses a boiler and chiller system, which could be replaced with individual HVAC units to decrease operating expenses. Under-utilized common spaces could be converted into amenity spaces. The property sits on a large lot with potential for additional development while retaining needed parking.
Key Highlights
- Prime location in the heart of downtown Palatine, steps from the Metra train line, providing easy access to Chicago and local amenities.
- Significant value‑add opportunities through strategic unit rehabilitation to achieve market rents (over $2.00 per foot).
- Potential for reduced operating expenses by replacing the centralized boiler and chiller system with individual HVAC units.
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
$1,299,292
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
6.50%
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%
$25,985,840
$26.0M
Cap Rate 7%
$18,561,314
$18.6M
Cap Rate 9%
$14,436,578
$14.4M
Market Conditions
NOI Build-Up for 112,000 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
$2.54M $22.68/SF
− Vacancy
−$177.8K −$1.59/SF
EGI
$2.36M $21.09/SF
− OpEx
−$1.06M −$9.49/SF
NOI
$1.30M $11.60/SF
Area
Cook County, IL
Vacancy
7.00%
Lease Rate
$22.68 /SF/Yr
Expense Ratio
45.00%
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%
$25,985,840
Cap Rate 7%
$18,561,314
Cap Rate 9%
$14,436,578
Alternative Uses
Best Use
Apartment 5plus
$18.56M
$16.24M – $21.65M
NOI $1,299,292 @ 7.0% cap · market cap 6.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$38.67M
$33.83M – $45.11M
NOI $2,706,794 @ 7.0% cap · market cap 13.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,424
Businesses Nearby
Explore this area
Business Placement
Demographics for 60067, IL
39,324
Population
16,039
Households
2.5
Avg Household Size
43
Median Age
59%
College-Educated
96%
High-School Grad
13.0 sq mi
ZIP Area
3,025
Density / Sq Mi
$121,572
Median Household Income
$64,520
Median Earnings
$1,521
Median Rent
$427,900
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?
Apartment building - 132-unit condo deconversion opportunity in downtown Palatine, Illinois.
Where is this apartment building located?
The property is located at 140 W Wood St Palatine, IL.
What is the asking price?
The asking price for this property is $20,000,000.
What are key features of this property?
This property features: Prime location in the heart of downtown Palatine, steps from the Metra train line, providing easy access to Chicago and local amenities.; Significant value‑add opportunities through strategic unit rehabilitation to achieve market rents (over $2.00 per foot).; Potential for reduced operating expenses by replacing the centralized boiler and chiller system with individual HVAC units.
