Freestanding Drive-Through
For Sale
$285,000
401 West Dundee Avenue, Elgin, IL 60120
One-story masonry property on a corner site suited to restaurant, coffee, office, and retail uses.
Property Size1,555 SF
Lot Size0.21 Acres
Price / SF$183.28
Days on Market145
Property Features for 401 West Dundee Avenue
General Information
Standard status
Active
Size
1,555 SF
Lot size
0.21 Acres
Property subtype
Retail - Restaurant
Additional Details
Drive-Thru
Yes
Building Details
Building Size
1,555 SF
Buildings
1
Stories
1
Units
1
Construction
masonry
Listing Agency:
SVN | Chicago Commercial
Listed By:
Spero Adamis · License #471005909
Source:
Commercialcafe
Added: Apr 8
Changed: Aug 30
Last Checked: Aug 30 at 12:54AM
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 SVN | Chicago Commercial
Investment Insights
Based on property information with market context.
This one-story freestanding building is constructed of masonry and includes a drive-through component. The property contains 1,555 SF of building area on an approximately 9,148-square-foot site, providing a compact commercial footprint for restaurant, coffee, QSR, office, or retail use.
The property occupies a corner location at 401 West Dundee Avenue in Elgin, Illinois. Its placement along the Dundee Avenue corridor adds a defined street presence, while the existing drive-through configuration supports food-service operations that require vehicle access.
The property occupies a corner location at 401 West Dundee Avenue in Elgin, Illinois. Its placement along the Dundee Avenue corridor adds a defined street presence, while the existing drive-through configuration supports food-service operations that require vehicle access.
Key Highlights
- 1,555 SF one‑story masonry building
- Approximately 9,148‑square‑foot site
- Existing drive‑through configuration
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
$26,031
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
9.13%
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%
$520,620
$520.6K
Cap Rate 7%
$371,871
$371.9K
Cap Rate 9%
$289,233
$289.2K
Market Conditions
NOI Build-Up for 1,555 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
$37.3K $24.00/SF
− Vacancy
−$2.6K −$1.68/SF
EGI
$34.7K $22.32/SF
− OpEx
−$8.7K −$5.58/SF
NOI
$26.0K $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%
$520,620
Cap Rate 7%
$371,871
Cap Rate 9%
$289,233
Alternative Uses
Best Use
Specialty Retail
$371.9K
$325.4K – $433.9K
NOI $26,031 @ 7.0% cap · market cap 9.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$536.9K
$469.8K – $626.4K
NOI $37,581 @ 7.0% cap · market cap 13.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,336
Businesses Nearby
Explore this area
Business Placement
Demographics for 60120, IL
50,799
Population
17,112
Households
3
Avg Household Size
35
Median Age
19%
College-Educated
74%
High-School Grad
17.4 sq mi
ZIP Area
2,919
Density / Sq Mi
$80,305
Median Household Income
$37,495
Median Earnings
$1,250
Median Rent
$227,000
Median Home Value
Market
Vacancy Rate% for Retail 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?
Drive through restaurant - One-story masonry property on a corner site suited to restaurant, coffee, office, and retail uses.
Where is this drive through restaurant located?
The property is located at 401 West Dundee Avenue Elgin, IL.
What is the asking price?
The asking price for this property is $285,000.
What are key features of this property?
This property features: 1,555 SF one‑story masonry building; Approximately 9,148‑square‑foot site; Existing drive‑through configuration
