Murphysboro Multifamily Portfolio Investment
For Sale
Contact for pricing
Pending
153 Youngman Rd, Murphysboro, IL 62966
27-unit, six-property multifamily portfolio in Murphysboro, Illinois for sale.
Property Size21,996 SF
Days on Market159
Property Features for 153 Youngman Rd
General Information
Standard status
Pending
Size
21,996 SF
Property subtype
Multifamily
Listing Agency:
Marcus & Millichap - Chicago Oak Brook
Listed By:
Steven Weinstock · License #IL 471011175
Source:
Crexi
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 8 at 6:40AM
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 Marcus & Millichap - Chicago Oak Brook
Investment Insights
Based on property information with market context.
The Murphysboro Portfolio presents a 27-unit, six-property multifamily portfolio situated across Murphysboro, Illinois. This offering represents an immediate value-add investment opportunity through loss-to-lease turnoff, operational streamlining, and targeted interior upgrades. The assets total 21,996 rentable square feet and feature a mix of one, two, and three-bedroom floor plans. Current rents average $694 compared to market rents of $838, positioning the portfolio for organic revenue growth through lease-renewal capture. The portfolio includes a 25-unit on-site storage facility located at 25 Youngman Road, providing a recurring ancillary income stream. Murphysboro is a stable, employer-diversified hub anchored by Southern Illinois Healthcare, Jackson County government, Aisin, General Dynamics, and nearby Southern Illinois University. This broad workforce base underpins renter demand, evidenced by a 4.7% vacancy rate and 0 units currently under construction within a 5-mile radius. The combination of low basis ($40,741/unit), immediate mark-to-market upside, limited capital requirements, and strong renter demand positions the Murphysboro Portfolio as a compelling, cash-flow-oriented investment within a supply constrained Southern Illinois submarket.
Key Highlights
- Immediate value‑add opportunity through loss‑to‑lease turnoff, operational streamlining, and targeted interior upgrades.
- High occupancy rate (94% economic occupancy) and potential to stabilize above a 10% cap rate.
- Below market rents ($694 average vs. $838 market) allowing for significant organic revenue growth.
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
$106,078
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
8.91%
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%
$2,121,560
$2.1M
Cap Rate 7%
$1,515,400
$1.5M
Cap Rate 9%
$1,178,644
$1.2M
Market Conditions
NOI Build-Up for 21,996 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
$163.7K $7.44/SF
− Vacancy
−$12.1K −$0.55/SF
EGI
$151.5K $6.89/SF
− OpEx
−$45.5K −$2.07/SF
NOI
$106.1K $4.82/SF
Area
Jackson County, IL
Vacancy
7.40%
Lease Rate
$7.44 /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%
$2,121,560
Cap Rate 7%
$1,515,400
Cap Rate 9%
$1,178,644
Alternative Uses
Best Use
Apartment 5plus
$2.44M
$2.13M – $2.85M
NOI $170,771 @ 7.0% cap · market cap 14.35%
Second Best
Self Storage
$1.52M
$1.33M – $1.77M
NOI $106,078 @ 7.0% cap · market cap 8.91%
Theoretical Best
Office A
$6.00M
$5.25M – $6.99M
NOI $419,684 @ 7.0% cap · market cap 35.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
24
Businesses Nearby
Explore this area
Business Placement
Demographics for 62966, IL
14,026
Population
7,125
Households
2
Avg Household Size
43
Median Age
23%
College-Educated
90%
High-School Grad
111.0 sq mi
ZIP Area
126
Density / Sq Mi
$54,242
Median Household Income
$32,109
Median Earnings
$681
Median Rent
$117,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - 27-unit, six-property multifamily portfolio in Murphysboro, Illinois for sale.
Where is this apartment building located?
The property is located at 153 Youngman Rd Murphysboro, IL.
What is the asking price?
The asking price for this property is $1,190,000.
What are key features of this property?
This property features: Immediate value‑add opportunity through loss‑to‑lease turnoff, operational streamlining, and targeted interior upgrades.; High occupancy rate (94% economic occupancy) and potential to stabilize above a 10% cap rate.; Below market rents ($694 average vs. $838 market) allowing for significant organic revenue growth.
