Five-Unit Multifamily Property in
For Sale
$699,000
Pending
3420 Harrison Avenue, Rockford, IL 61108
Fully occupied five-unit residential property with immediate cash flow.
Property Size6,200 SF
Days on Market157
Property Features for 3420 Harrison Avenue
General Information
Standard status
Pending
Size
6,200 SF
Property subtype
Multi Family 5+ / 5+ Units
Taxes and HOA fees
Annual Taxes
$8,937
Amenities
Window Unit
Forced Air
Yes
Gas
Refrigerator, Oven
No
Shingle
Brick/Stone, Siding
Building Details
Year Built
1965
Units
5
Listing Agency:
Advanced Real Estate Concepts
(815) 520-3995
Listed By:
Ken L Redeker · License #471012969
(815) 520-3995
Source:
Compass
Added: Mar 22
Changed: Aug 23
Last Checked: Aug 24 at 12:20PM
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 Advanced Real Estate Concepts
Investment Insights
Based on property information with market context.
The property features five residential units, each with a 3-bedroom, 1.5-bath layout. The unit type is suited for workforce housing. The property is 100% occupied with a seasoned tenant base, providing immediate and dependable cash flow. The property is located in Rockford, which demonstrates steady workforce housing demand. The property is suitable for private investors and portfolio operators seeking stabilized returns. The property size is 6,600 square feet.
Key Highlights
- Immediate and dependable cash flow from acquisition due to 100% occupancy.
- Five residential units, each with a desirable 3 bedroom, 1.5 bath layout.
- Proven strong performance in the workforce housing segment.
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
$35,355
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
5.06%
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%
$707,100
$707.1K
Cap Rate 7%
$505,071
$505.1K
Cap Rate 9%
$392,833
$392.8K
Market Conditions
NOI Build-Up for 6,200 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
$67.0K $10.80/SF
− Vacancy
−$2.7K −$0.43/SF
EGI
$64.3K $10.37/SF
− OpEx
−$28.9K −$4.67/SF
NOI
$35.4K $5.70/SF
Area
Rockford, IL
Vacancy
4.00%
Lease Rate
$10.80 /SF/Yr
Expense Ratio
45.00%
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%
$707,100
Cap Rate 7%
$505,071
Cap Rate 9%
$392,833
Alternative Uses
Best Use
Apartment 5plus
$505.1K
$441.9K – $589.3K
NOI $35,355 @ 7.0% cap · market cap 5.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.65M
$1.44M – $1.92M
NOI $115,439 @ 7.0% cap · market cap 16.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
155
Businesses Nearby
Explore this area
Business Placement
Demographics for 61108, IL
29,660
Population
12,650
Households
2.3
Avg Household Size
39
Median Age
24%
College-Educated
87%
High-School Grad
10.9 sq mi
ZIP Area
2,721
Density / Sq Mi
$63,046
Median Household Income
$34,856
Median Earnings
$986
Median Rent
$128,300
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Apartment building - Fully occupied five-unit residential property with immediate cash flow.
Where is this apartment building located?
The property is located at 3420 Harrison Avenue Rockford, IL.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Immediate and dependable cash flow from acquisition due to 100% occupancy.; Five residential units, each with a desirable 3 bedroom, 1.5 bath layout.; Proven strong performance in the workforce housing segment.
