Listing Agency: Cissell Mueller Company Show Phone

Listed By: Robert D Cissell · License #1999024539 Show Phone

Source: Moodyscre

Added: Oct 24, 2024 Changed: Sep 3 Last Checked: Sep 5 at 6:46AM

Report an Issue

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 Cissell Mueller Company

Investment Insights

Based on property information with market context.

This property features a 10,640 square foot freestanding mini-market store currently under construction. The absolute NNN lease has an annual rent of $120,837.48. New lease terms include 5% rent increases every 5 years. The lease term is 15 years, with an anticipated opening in early May 2025. The sale price is $1,859,038.15, reflecting a 6.5% CAP rate, with an average CAP rate of 6.83% over the 15-year term. The property is located at 601 S Moreland Rd, Bethalto, IL.

Key Highlights

• 15‑Year Absolute NNN Lease
• Freestanding 10,640 SF Building
• Attractive 6.5% CAP Rate

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

$130,578

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

7.05%

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%

$2,611,560 $2.6M

Cap Rate 7%

$1,865,400 $1.9M

Cap Rate 9%

$1,450,867 $1.5M

Market Conditions

NOI Build-Up for 10,640 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

$191.5K $18.00/SF

− Vacancy

−$5.0K −$0.47/SF

EGI

$186.5K $17.53/SF

− OpEx

−$56.0K −$5.26/SF

NOI

$130.6K $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%

$2,611,560

Cap Rate 7%

$1,865,400

Cap Rate 9%

$1,450,867

Alternative Uses

Best Use

Retail

$1.87M

$1.63M – $2.18M (±1% cap)

NOI $130,578 @ 7.0% cap · market cap 7.05%

Second Best

Specialty Retail

$1.80M

$1.58M – $2.10M (±1% cap)

NOI $126,189 @ 7.0% cap · market cap 6.82%

Theoretical Best

Office A

$2.90M

$2.54M – $3.38M (±1% cap)

NOI $203,011 @ 7.0% cap · market cap 10.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Suggested Use

Top Pick Law Firm Real Estate Agency HVAC Service Dental Office Grocery & Convenience Store Bakery

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

104

Businesses Nearby

4k

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 56% Dining 44%

Valvoline Instant Oil Change Shops & Services

2,003 visits/mo 0.5 miles

Domino's Pizza Dining

1,917 visits/mo 0.5 miles

Extra Space Storage Shops & Services

388 visits/mo 0.4 miles

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

Similar For Sale Nearby

Medical Office with Conference Room

440 S Prairie Street, Bethalto, IL 62010

$205,000

0.31 Acres

View details

Horse Barn and Ranch Acreage

4837 Rocky Branch Rd, Bethalto, IL 62010

$594,900

7.50 Acres

View details

Downtown Office Building with Separate Entrances

119 South Prairie St, Bethalto, IL 62010

Contact for pricing

3,658 SF

View details

Flex Space with Shop and Storage

426 South Prairie Street, Bethalto, IL 62010

Contact for pricing

View details

Frequently Asked Questions

What type of property is this?

Grocery and convenience store - 10,640 SF freestanding building with NNN lease in Bethalto, IL.

Where is this grocery and convenience store located?

The property is located at 601 S Moreland Rd Bethalto, IL.

What is the asking price?

The asking price for this property is $1,851,097.

What are key features of this property?

This property features: 15‑Year Absolute NNN Lease; Freestanding 10,640 SF Building; Attractive 6.5% CAP Rate