Remodeled Subway Restaurant
For Sale
$999,999
1295 Toronto Road, Springfield, IL 62707
Combined offering includes a remodeled franchise location and a separate three-tenant commercial building.
Property Size2,200 SF
Price / SF$454.55
Days on Market274
Property Features for 1295 Toronto Road
General Information
Standard status
Active
Size
2,200 SF
Property subtype
General Commercial
Additional Details
Business Included
Yes
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$16,926
Amenities
Central Air
3
Other
Building Details
Stories
1
Listing Agency:
RE/MAX Professionals
(217) 652-0875
Listed By:
Melissa Vorreyer · License #475100751
Source:
Xome
Added: Nov 29, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:08PM
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 RE/MAX Professionals
Investment Insights
Based on property information with market context.
This offering combines a remodeled Subway franchise restaurant with a separate three-tenant commercial building, conveyed together as one package. The property includes approximately 2,200 square feet and central air conditioning. The restaurant is located within a maintained strip center with exposure to Interstate 55 and serves student, commuter, and local traffic. The property is located at 1295 Toronto Road in Springfield, Illinois, near the University of Illinois Springfield and Lincoln Land Community College. Subway franchise approval is required for the buyer.
Key Highlights
- Remodeled Subway franchise restaurant included in the package
- Separate three‑tenant commercial building sold with the restaurant
- Approximately 2,200 square feet with central air conditioning
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
$30,546
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
3.05%
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%
$610,920
$610.9K
Cap Rate 7%
$436,371
$436.4K
Cap Rate 9%
$339,400
$339.4K
Market Conditions
NOI Build-Up for 2,200 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
$43.6K $19.80/SF
− Vacancy
−$2.8K −$1.29/SF
EGI
$40.7K $18.51/SF
− OpEx
−$10.2K −$4.63/SF
NOI
$30.5K $13.88/SF
Area
Springfield, IL
Vacancy
6.50%
Lease Rate
$19.80 /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%
$610,920
Cap Rate 7%
$436,371
Cap Rate 9%
$339,400
Alternative Uses
Best Use
Specialty Retail
$436.4K
$381.8K – $509.1K
NOI $30,546 @ 7.0% cap · market cap 3.05%
Second Best
Retail
$364.3K
$318.8K – $425.0K
NOI $25,502 @ 7.0% cap · market cap 2.55%
Theoretical Best
Office A
$540.1K
$472.6K – $630.2K
NOI $37,810 @ 7.0% cap · market cap 3.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
200
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 62707, IL
7,290
Population
3,751
Households
1.9
Avg Household Size
47
Median Age
28%
College-Educated
94%
High-School Grad
41.8 sq mi
ZIP Area
174
Density / Sq Mi
$83,988
Median Household Income
$48,471
Median Earnings
$926
Median Rent
$164,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Combined offering includes a remodeled franchise location and a separate three-tenant commercial building.
Where is this conventional restaurant located?
The property is located at 1295 Toronto Road Springfield, IL.
What is the asking price?
The asking price for this property is $999,999.
What are key features of this property?
This property features: Remodeled Subway franchise restaurant included in the package; Separate three‑tenant commercial building sold with the restaurant; Approximately 2,200 square feet with central air conditioning
