Shadow-Anchored Retail Strip
For Sale
$3,324,000
2-16 Tyler Creek Plaza, Elgin, IL 60123
Five-tenant strip center anchored by a remodeled grocery provides a built-in retail mix for durable day-to-day traffic.
Property Size10,825 SF
Price / SF$307.07
Days on Market51
Property Features for 2-16 Tyler Creek Plaza
General Information
Standard status
Active
Size
10,825 SF
Property subtype
Shopping Strip
Amenities
100 Percent Occupied by Restaurant and Service Based Tenants
#1 Ranked Wingstop in the State And Top Two Percent Nationwide (Placer.ai) | Rosati's Pizza has Been a Tenant for Over 42 Years and Has Seven Years Remaining
All Tenants Operate Under Net Leases with Management Fee Reimbursement
Scheduled Rental Increases | Wingstop Offers 15 Percent Rent Increases Every Five Years While the Balance of Tenants Have Three Percent Annual Rent Increases
Part of the Greater Tyler Creek Plaza, Anchored by Grocer, Frank's Freshway Market | Recently Remodeled
1.4 Miles from Interstate 90 On/Off Ramp with 108,800 Vehicles per Day | One Mile from the Metra Train Station for the MD-W Line with Over 2.7 Million Annual Riders
Surrounded By Elgin's Industrial Corridors | Large Employment Area with 87,537 People Working Within a Three-Mile Radius
Building Details
Building Size
10,825 SF
Year Built
1975
Listing Agency:
Marcus & Millichap | Chicago Oak Brook
(630) 570-2163
Listed By:
Adrian Mendoza · License #License(s): IL: 475.147980
(630) 570-2163
Source:
Marcusmillichap
Added: Jun 28
Changed: Aug 16
Last Checked: Aug 16 at 3:06AM
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.
Tyler Creek Plaza is a five-tenant, grocery shadow-anchored retail strip center in Elgin, IL (Kane County). The center is shadow anchored by Frank’s Freshway Market, a local family-owned grocery chain that recently completed a major remodel. The tenant mix includes three restaurants, one specialty grocer/restaurant, and one service tenant, with Rosati’s Pizza as a longstanding cornerstone of the property. Wingstop anchors the west end cap.
Patrons have full access to parking on the adjacent parcels, including the Frank’s Freshway Market parcel. The property is located 1.4 miles from Interstate 90, and one mile from the MD-W Metra station serving more than 2.7 million annual riders. The trade area is supported by dense industrial corridors, with nearly 88,000 workers within three miles described as a daytime employment base.
From an ownership standpoint, the leases are structured as net leases with management fee reimbursement, and many include annual rent increases, creating inflation-hedge characteristics. The center’s tenant lineup is designed to support both grocery-related and restaurant-oriented traffic patterns, with long-term operating continuity from established concepts including Rosati’s Pizza.
Patrons have full access to parking on the adjacent parcels, including the Frank’s Freshway Market parcel. The property is located 1.4 miles from Interstate 90, and one mile from the MD-W Metra station serving more than 2.7 million annual riders. The trade area is supported by dense industrial corridors, with nearly 88,000 workers within three miles described as a daytime employment base.
From an ownership standpoint, the leases are structured as net leases with management fee reimbursement, and many include annual rent increases, creating inflation-hedge characteristics. The center’s tenant lineup is designed to support both grocery-related and restaurant-oriented traffic patterns, with long-term operating continuity from established concepts including Rosati’s Pizza.
Key Highlights
- Five‑tenant grocery shadow anchored strip center in Elgin, IL (Kane County), built in 1975
- Shadow anchored by Frank’s Freshway Market, which recently completed a major remodel
- Tenant mix includes 3 restaurants, 1 specialty grocer/restaurant, and 1 service tenant
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
$181,211
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
5.45%
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%
$3,624,220
$3.6M
Cap Rate 7%
$2,588,729
$2.6M
Cap Rate 9%
$2,013,456
$2.0M
Market Conditions
NOI Build-Up for 10,825 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
$259.8K $24.00/SF
− Vacancy
−$18.2K −$1.68/SF
EGI
$241.6K $22.32/SF
− OpEx
−$60.4K −$5.58/SF
NOI
$181.2K $16.74/SF
Area
Cook County, IL
Vacancy
7.00%
Lease Rate
$24.00 /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%
$3,624,220
Cap Rate 7%
$2,588,729
Cap Rate 9%
$2,013,456
Alternative Uses
Best Use
Specialty Retail
$2.59M
$2.27M – $3.02M
NOI $181,211 @ 7.0% cap · market cap 5.45%
Second Best
Retail
$2.15M
$1.88M – $2.50M
NOI $150,253 @ 7.0% cap · market cap 4.52%
Theoretical Best
Office A
$3.74M
$3.27M – $4.36M
NOI $261,617 @ 7.0% cap · market cap 7.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
531
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60123, IL
47,932
Population
18,129
Households
2.6
Avg Household Size
37
Median Age
24%
College-Educated
84%
High-School Grad
14.0 sq mi
ZIP Area
3,424
Density / Sq Mi
$86,762
Median Household Income
$40,288
Median Earnings
$1,226
Median Rent
$242,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Tyler Creek Plaza — 50 Tyler Creek Plaza, Elgin, IL 60123
Frequently Asked Questions
What type of property is this?
Shopping center - Five-tenant strip center anchored by a remodeled grocery provides a built-in retail mix for durable day-to-day traffic.
Where is this shopping center located?
The property is located at 2-16 Tyler Creek Plaza Elgin, IL.
What is the asking price?
The asking price for this property is $3,324,000.
What are key features of this property?
This property features: Five‑tenant grocery shadow anchored strip center in Elgin, IL (Kane County), built in 1975; Shadow anchored by Frank’s Freshway Market, which recently completed a major remodel; Tenant mix includes 3 restaurants, 1 specialty grocer/restaurant, and 1 service tenant
