South Holland Auto Center
For Sale
Contact for pricing
245 W 162nd St, South Holland, IL
Single tenant auto center for sale in South Holland, IL.
Property Size6,500 SF
Lot Size0.48 Acres
Price / SF$92.31
Days on Market668
Property Features for 245 W 162nd St
General Information
Standard status
Active
Size
6,500 SF
Lot size
0.48 Acres
Property subtype
RETAIL
Listing Agency:
Lagestee-Mulder (LM)
(708) 333-8338
Listed By:
Martha Winter · License #471002749
(224) 523-9174
Source:
Moodyscre
Added: Nov 15, 2024
Changed: Aug 16
Last Checked: Sep 13 at 6:20AM
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 Lagestee-Mulder (LM)
Investment Insights
Based on property information with market context.
This single-tenant auto center is available for acquisition, situated at 239 W 162nd Street in South Holland, IL. The property is located on the south side of 162nd Street, also known as Route 6, and is approximately 10 minutes from both Interstate 94 to the east and Interstate 294 to the west. The location benefits from high daily traffic counts on 162nd Street, ranging from 23,000 to 31,000 vehicles per day. The building has approximately 6,500 square feet of leasable area and is situated on a 0.46-acre lot. The facility includes 8 operational car bays, a dedicated office, and a waiting area. Recent improvements include a new 60-mil TPO roof installed in 2024 with a 20-year warranty, and a new furnace with a 10-year warranty. The property is currently 100% occupied by a long-tenured tenant who recently signed a new triple net lease for a primary term of 7 years, with two 5-year option periods. The rental rate includes a 6.6% increase in the fourth lease year and a 3.7% increase in the sixth lease year. During the option periods, rents increase 2% annually. Nearby retailers include Dunkin Donuts, Wendy’s, Browns Chicken, and Pizza Hut, as well as Advocate Health Care and UChicago Medicine. This property offers a long-term, absolute net leased auto center investment opportunity in the Chicago MSA.
Key Highlights
- Single‑tenant, net‑leased auto center providing passive income.
- New 7‑year triple net lease with a long‑tenured tenant, plus two 5‑year options.
- Rental rate increases built into the lease, including 6.6% in year four and 3.7% in year six.
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
$27,980
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
4.66%
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%
$559,600
$559.6K
Cap Rate 7%
$399,714
$399.7K
Cap Rate 9%
$310,889
$310.9K
Market Conditions
NOI Build-Up for 6,500 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
$42.1K $6.48/SF
− Vacancy
−$2.1K −$0.33/SF
EGI
$40.0K $6.15/SF
− OpEx
−$12.0K −$1.84/SF
NOI
$28.0K $4.30/SF
Area
Cook County, IL
Vacancy
5.10%
Lease Rate
$6.48 /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%
$559,600
Cap Rate 7%
$399,714
Cap Rate 9%
$310,889
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.50M
NOI $90,221 @ 7.0% cap · market cap 15.04%
Second Best
Industrial
$399.7K
$349.8K – $466.3K
NOI $27,980 @ 7.0% cap · market cap 4.66%
Theoretical Best
Office A
$2.24M
$1.96M – $2.62M
NOI $157,091 @ 7.0% cap · market cap 26.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
603
Businesses Nearby
Well-served
Demand for This Use
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Auto shop - Single tenant auto center for sale in South Holland, IL.
Where is this auto shop located?
The property is located at 245 W 162nd St South Holland, IL.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Single‑tenant, net‑leased auto center providing passive income.; New 7‑year triple net lease with a long‑tenured tenant, plus two 5‑year options.; Rental rate increases built into the lease, including 6.6% in year four and 3.7% in year six.
