Dixon Drive-Thru Redevelopment
For Sale
$700,000
737 N Galena Ave, Dixon, IL 61021
2,635 SF building on 0.83 acres with drive-thru.
Property Size2,635 SF
Lot Size0.83 Acres
Price / SF$265.65
Days on Market135
Property Features for 737 N Galena Ave
General Information
Standard status
Active
Size
2,635 SF
Lot size
0.83 Acres
Property subtype
Retail
Building Details
Building Size
2,635 SF
Year Built
1995
Listing Agency:
Latitude Commercial
(219) 308-3553
Listed By:
Myles Rapchak · License #IL #475184956
(219) 308-3553
Source:
Latitudeco
Added: Apr 8
Changed: Aug 19
Last Checked: Aug 20 at 4:27AM
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 Latitude Commercial
Investment Insights
Based on property information with market context.
This property, constructed in 1995, offers a 2,635-square-foot building with a drive-thru on a 0.83-acre site. Zoned B-2, General Business District, the location allows for a wide range of commercial uses and presents a lease-up or redevelopment opportunity. Situated in a retail area, the property provides direct access to residential communities, national and regional tenants, and freeways. The site benefits from traffic counts of over 19,500 vehicles per day on North Galena Avenue (U.S. Highway 52).
Key Highlights
- High‑traffic location: Over 19,500 Vehicles Per Day (VPD) on North Galena Ave (U.S. Hwy 52).
- Excellent lease‑up or redevelopment opportunity.
- Zoned B‑2 General Business District: Allows for a wide range of uses.
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
$41,577
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
5.94%
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%
$831,540
$831.5K
Cap Rate 7%
$593,957
$594.0K
Cap Rate 9%
$461,967
$462.0K
Market Conditions
NOI Build-Up for 2,635 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
$56.9K $21.60/SF
− Vacancy
−$1.5K −$0.56/SF
EGI
$55.4K $21.04/SF
− OpEx
−$13.9K −$5.26/SF
NOI
$41.6K $15.78/SF
Area
Lee County, IL
Vacancy
2.60%
Lease Rate
$21.60 /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%
$831,540
Cap Rate 7%
$593,957
Cap Rate 9%
$461,967
Alternative Uses
Best Use
Specialty Retail
$594.0K
$519.7K – $693.0K
NOI $41,577 @ 7.0% cap · market cap 5.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$718.2K
$628.5K – $837.9K
NOI $50,276 @ 7.0% cap · market cap 7.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
550
Businesses Nearby
95k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 56%
Shops & Services 36%
Home Improvements & Furnishings 8%
McDonald's
Dining
29,689 visits/mo
0.5 miles
Circle K
Shops & Services
12,237 visits/mo
0.4 miles
Wendy's
Dining
9,188 visits/mo
0.5 miles
Ace Hardware & Outdoor Center
Home Improvements & Furnishings
7,690 visits/mo
0.1 miles
Marathon
Shops & Services
7,163 visits/mo
0.2 miles
Demographics for 61021, IL
22,984
Population
10,110
Households
2.3
Avg Household Size
44
Median Age
21%
College-Educated
89%
High-School Grad
150.1 sq mi
ZIP Area
153
Density / Sq Mi
$65,719
Median Household Income
$40,805
Median Earnings
$823
Median Rent
$144,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - 2,635 SF building on 0.83 acres with drive-thru.
Where is this drive through restaurant located?
The property is located at 737 N Galena Ave Dixon, IL.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: High‑traffic location: Over 19,500 Vehicles Per Day (VPD) on North Galena Ave (U.S. Hwy 52).; Excellent lease‑up or redevelopment opportunity.; Zoned B‑2 General Business District: Allows for a wide range of uses.
