Remodeled 8-Office
For Sale
$425,000
265 Stonegate Road, Algonquin, IL 60102
Fully leased office condominium with shared conference, kitchen, waiting, and restroom areas.
Property Size2,476 SF
Days on Market102
Property Features for 265 Stonegate Road
General Information
Standard status
Active
Size
2,476 SF
Property subtype
Commercial
Zoning
COMMR
Occupancy
100%
Additional Details
Office Units
8
Taxes and HOA fees
Annual Taxes
$9,467
Amenities
common conference room
men and women restrooms
kitchen area
waiting area
Building Details
Building Size
2,476 SF
Year Built
2004
Stories
1
Units
8
Tenancy
Multi
Owner Occupied
No
Listing Agency:
Perillo Real Estate Group
(224) 634-4476
Listed By:
Richard Perillo · License #471020096
(224) 634-4476
Source:
Perillorealestategroup
Added: May 4
Changed: Aug 5
Last Checked: Aug 12 at 12:41PM
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 Perillo Real Estate Group
Investment Insights
Based on property information with market context.
This fully leased office condominium contains eight separate office rentals supported by shared business amenities, including a conference room, men’s and women’s restrooms, a kitchen, and a waiting area. Interior updates include new flooring in both the private offices and common spaces, fresh paint, and conference room furniture. The property was built in 2004 and is zoned COMMR.
Located one block from Randall Rd, the office condo is adjacent to the Algonquin Jewel Shopping Center and across from Lifetime Fitness. Building improvements include a roof completed in 2019 and a driveway sealed in 2020.
Located one block from Randall Rd, the office condo is adjacent to the Algonquin Jewel Shopping Center and across from Lifetime Fitness. Building improvements include a roof completed in 2019 and a driveway sealed in 2020.
Key Highlights
- Fully leased office condominium with 8 office rentals
- Shared conference room, kitchen, waiting area, and men’s and women’s restrooms
- Recent flooring, paint, and conference room furniture improvements
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
$34,140
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
8.03%
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%
$682,800
$682.8K
Cap Rate 7%
$487,714
$487.7K
Cap Rate 9%
$379,333
$379.3K
Market Conditions
NOI Build-Up for 2,476 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
$60.6K $24.48/SF
− Vacancy
−$15.1K −$6.10/SF
EGI
$45.5K $18.38/SF
− OpEx
−$11.4K −$4.60/SF
NOI
$34.1K $13.79/SF
Area
McHenry County, IL
Vacancy
24.90%
Lease Rate
$24.48 /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%
$682,800
Cap Rate 7%
$487,714
Cap Rate 9%
$379,333
Alternative Uses
Best Use
Office B
$487.7K
$426.8K – $569.0K
NOI $34,140 @ 7.0% cap · market cap 8.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$854.8K
$748.0K – $997.3K
NOI $59,839 @ 7.0% cap · market cap 14.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Office units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,001
Businesses Nearby
Explore this area
Business Placement
Demographics for 60102, IL
31,959
Population
12,076
Households
2.6
Avg Household Size
42
Median Age
43%
College-Educated
95%
High-School Grad
15.8 sq mi
ZIP Area
2,023
Density / Sq Mi
$128,070
Median Household Income
$59,484
Median Earnings
$1,826
Median Rent
$320,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Fully leased office condominium with shared conference, kitchen, waiting, and restroom areas.
Where is this office units located?
The property is located at 265 Stonegate Road Algonquin, IL.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Fully leased office condominium with 8 office rentals; Shared conference room, kitchen, waiting area, and men’s and women’s restrooms; Recent flooring, paint, and conference room furniture improvements
