Listing Agency: Trelleum LLC

Listed By: Theresa Mueller · License #471006935 Show Phone

Source: Exprealty

Added: Jul 19, 2024 Changed: Sep 7 Last Checked: Sep 21 at 9:29AM

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Investment Insights

Based on property information with market context.

This is an opportunity to acquire a well-maintained 5,000 square foot auto shop. The property features seven bays, including one bay suitable for large vehicle repair. The business has been successfully operated by the same owner for over 30 years and presents growth potential. Located on a high-traffic section of 159th Street, east of the tollway, the property is suitable for automotive-related businesses.

Key Highlights

• Highly successful, turnkey automotive business with real estate included.
• Prime location on high‑traffic 159th Street, east of the tollway.
• Well‑maintained 5000 SF building with 7 bays, including one for large vehicle repair.

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

$69,401

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

7.71%

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%

$1,388,020 $1.4M

Cap Rate 7%

$991,443 $991.4K

Cap Rate 9%

$771,122 $771.1K

Market Conditions

NOI Build-Up for 5,000 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

$108.0K $21.60/SF

− Vacancy

−$8.9K −$1.77/SF

EGI

$99.1K $19.83/SF

− OpEx

−$29.7K −$5.95/SF

NOI

$69.4K $13.88/SF

Area

Cook County, IL

Vacancy

8.20%

Lease Rate

$21.60 /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%

$1,388,020

Cap Rate 7%

$991,443

Cap Rate 9%

$771,122

Alternative Uses

Best Use

Retail

$991.4K

$867.5K – $1.16M (±1% cap)

NOI $69,401 @ 7.0% cap · market cap 7.71%

Second Best

Industrial

$307.5K

$269.0K – $358.7K (±1% cap)

NOI $21,523 @ 7.0% cap · market cap 2.39%

Theoretical Best

Office A

$1.73M

$1.51M – $2.01M (±1% cap)

NOI $120,839 @ 7.0% cap · market cap 13.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

John's Arrow Transmission Auto Repair Shop

Suggested Use

Top Pick Real Estate Agency Dental Office Bakery (Bike/Boat/Book/etc) Store Computer & Electronic Repair Law Firm

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

Location Intelligence

Trade Area within ½ mile

512

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 60426, IL

24,114

Population

10,870

Households

2.2

Avg Household Size

37

Median Age

10%

College-Educated

77%

High-School Grad

7.7 sq mi

ZIP Area

3,132

Density / Sq Mi

$40,995

Median Household Income

$29,712

Median Earnings

$987

Median Rent

$88,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this auto shops located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Auto shop - Well-maintained 7-bay auto shop on high-traffic street.

Where is this auto shop located?

The property is located at 332 E 159th St Dixmoor, IL.

What is the asking price?

The asking price for this property is $900,000.

What are key features of this property?

This property features: Highly successful, turnkey automotive business with real estate included.; Prime location on high‑traffic 159th Street, east of the tollway.; Well‑maintained 5000 SF building with 7 bays, including one for large vehicle repair.