Building Details

Year Built 1950

Construction ranch style

Tenancy Multi

Listing Agency: Compass

Listed By: Mada Hitchmough · License #475165421 Show Phone

Source: Compass

Added: Apr 21 Changed: Sep 6 Last Checked: Sep 7 at 11:44AM

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 Compass

Investment Insights

Based on property information with market context.

This residential income property consists of an existing ranch-style 2 flat. Each unit includes 2 bedrooms and 1 bathroom, with additional features such as oversized garage parking and significant storage. Laundry is located in the basement.

The property is located at 124 S Central Avenue in Highwood, IL 60040. Public remarks indicate the site is zoned for multi unit use.

Because the property is described as offering a tear-down and build opportunity, the site may appeal to buyers looking to improve or expand the existing structure, subject to applicable requirements.

Key Highlights

• Ranch‑style 2‑flat with two 2‑bed, 1‑bath units
• Each unit includes oversized garage parking plus tons of storage
• Basement features laundry and additional storage

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

$22,510

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

4.10%

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%

$450,200 $450.2K

Cap Rate 7%

$321,571 $321.6K

Cap Rate 9%

$250,111 $250.1K

Market Conditions

NOI Build-Up for 1,680 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

$34.3K $20.40/SF

− Vacancy

−$2.1K −$1.26/SF

EGI

$32.2K $19.14/SF

− OpEx

−$9.6K −$5.74/SF

NOI

$22.5K $13.40/SF

Area

Lake County, IL

Vacancy

6.17%

Lease Rate

$20.40 /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%

$450,200

Cap Rate 7%

$321,571

Cap Rate 9%

$250,111

Alternative Uses

Best Use

Multifamily LT 5

$321.6K

$281.4K – $375.2K (±1% cap)

NOI $22,510 @ 7.0% cap · market cap 4.10%

Second Best

Apartment 5plus

$296.2K

$259.2K – $345.6K (±1% cap)

NOI $20,735 @ 7.0% cap · market cap 3.78%

Theoretical Best

Office A

$580.0K

$507.5K – $676.7K (±1% cap)

NOI $40,602 @ 7.0% cap · market cap 7.40%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Real Estate Agency Computer & Electronic Repair Law Firm Accounting Firm Nail Salon Catering Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

2

Residential units

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

870

Businesses Nearby

Explore this area Business Placement

Demographics for 60040, IL

5,102

Population

1,969

Households

2.6

Avg Household Size

37

Median Age

38%

College-Educated

80%

High-School Grad

0.8 sq mi

ZIP Area

6,378

Density / Sq Mi

$101,862

Median Household Income

$41,361

Median Earnings

$1,800

Median Rent

$454,500

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 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 duplexes located? What is the asking price? Find similar properties What are key features of this property?

Similar For Sale Nearby

Retail Building in Highwood

742 Sheridan Rd, Highwood, IL

Contact for pricing

6,400 SF

View details

Restaurant Space with Patio

524 Sheridan Rd, Highwood, IL 60040

Contact for pricing

1,980 SF

View details

Frequently Asked Questions

What type of property is this?

Duplex - Ranch-style 2 flat with two 2-bed, 1-bath units, oversized garage parking, and basement laundry and storage.

Where is this duplex located?

The property is located at 124 South Central Avenue Highwood, IL.

What is the asking price?

The asking price for this property is $549,000.

What are key features of this property?

This property features: Ranch‑style 2‑flat with two 2‑bed, 1‑bath units; Each unit includes oversized garage parking plus tons of storage; Basement features laundry and additional storage