Zoned B1 Retail/Office
For Sale
$200,000
120 W Grant Highway, Marengo, IL 60152
Commercial Sale, Marengo, IL
Property Size1,176 SF
Lot Size0.22 Acres
Price / SF$170.07
Days on Market124
Property Features for 120 W Grant Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
1 block west of the intersection of Rt 20/23 on northeast corner of Rt 20 (Grant) and Ann Street. Across from McDonald's.
Subdivision
Harmony / Marengo
Standard status
Active
APN
1135283011
Lot size
0.22 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
3770
Utilities
Utilities
Natural Gas Available
Building Details
Year built
1954
Floors in Building
1
Number of units
1
Building materials
Block
Roof type
Rubber
Listing Agency:
CENTURY 21 New Heritage · Century 21 Real Estate
(815) 568-8093
Listed By:
Sandra Butenschoen · License #475081467
(847) 875-4960
Added: Apr 27
Changed: Aug 19
Last Checked: Aug 28 at 9:06PM
MLS# 12632365
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This single-story block commercial building is positioned on a 0.2205-acre lot and includes two bay areas, two bathrooms, updated plumbing, and a reception/office area along with a second small office. The property is served by natural gas that is available, and it features a rubber roof.
The building is located on the northeast corner of Rt. 20 and Ann Street, approximately one block west of the Rt. 20/23 intersection. The property is zoned B1, with an emphasis on enhancing the central business district with retail/service uses. While the building previously had a special use permit for a service station/repair shop, that usage and any auto-related business is no longer available. Nearby context includes a city parking lot to the north, a vacant repair shop and restaurant to the east, and McDonald’s across Rt. 20, with minutes to the full interchange of Rt. 23 and I-90.
The interior layout provides a combination of bay space and office areas, which can support retail and service configurations consistent with the B1 zoning parameters referenced in the materials.
The building is located on the northeast corner of Rt. 20 and Ann Street, approximately one block west of the Rt. 20/23 intersection. The property is zoned B1, with an emphasis on enhancing the central business district with retail/service uses. While the building previously had a special use permit for a service station/repair shop, that usage and any auto-related business is no longer available. Nearby context includes a city parking lot to the north, a vacant repair shop and restaurant to the east, and McDonald’s across Rt. 20, with minutes to the full interchange of Rt. 23 and I-90.
The interior layout provides a combination of bay space and office areas, which can support retail and service configurations consistent with the B1 zoning parameters referenced in the materials.
Key Highlights
- Zoned B1 for retail/service use in the central business district
- 0.2205‑acre lot with single‑story block construction
- Two bay areas plus reception/office area and second small office
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
$16,215
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
8.11%
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%
$324,300
$324.3K
Cap Rate 7%
$231,643
$231.6K
Cap Rate 9%
$180,167
$180.2K
Market Conditions
NOI Build-Up for 1,176 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
$28.8K $24.48/SF
− Vacancy
−$7.2K −$6.10/SF
EGI
$21.6K $18.38/SF
− OpEx
−$5.4K −$4.60/SF
NOI
$16.2K $13.79/SF
Area
McHenry County, IL
Vacancy
24.90%
Lease Rate
$24.48 /SF/Yr
Expense Ratio
25.00%
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%
$324,300
Cap Rate 7%
$231,643
Cap Rate 9%
$180,167
Alternative Uses
Best Use
Office B
$231.6K
$202.7K – $270.3K
NOI $16,215 @ 7.0% cap · market cap 8.11%
Second Best
Retail
$162.1K
$141.9K – $189.1K
NOI $11,348 @ 7.0% cap · market cap 5.67%
Theoretical Best
Office A
$406.0K
$355.3K – $473.7K
NOI $28,421 @ 7.0% cap · market cap 14.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
356
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60152, IL
12,382
Population
4,715
Households
2.6
Avg Household Size
42
Median Age
27%
College-Educated
94%
High-School Grad
95.4 sq mi
ZIP Area
130
Density / Sq Mi
$94,209
Median Household Income
$51,808
Median Earnings
$1,090
Median Rent
$259,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Single-story block building zoned B1 with natural gas available and two bay areas plus reception and offices.
Where is this storefront property located?
The property is located at 120 W Grant Highway Marengo, IL.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Zoned B1 for retail/service use in the central business district; 0.2205‑acre lot with single‑story block construction; Two bay areas plus reception/office area and second small office
