Chicago United Rentals Investment
For Sale
Contact for pricing
4027 S Wells St, Chicago, IL 60609
NNN leased United Rentals property with billboard income in Chicago.
Property Size12,000 SF
Price / SF$352.75
Days on Market924
Property Features for 4027 S Wells St
General Information
Standard status
Active
Size
12,000 SF
Property subtype
Retail, Industrial
Zoning
M2-3: Light Industry District
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$285,711
Building Details
Year Built
1960
Tenancy
Single
Listing Agency:
SRS Real Estate Partners | Salt Lake City
(801) 410-1621
Listed By:
Max Finn · License #UT 12066979-SA00
Source:
Crexi
Added: Feb 10, 2024
Changed: Aug 12
Last Checked: Aug 21 at 3:16PM
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 SRS Real Estate Partners | Salt Lake City
Investment Insights
Based on property information with market context.
This investment property in Chicago, Illinois, is an absolute NNN leased United Rentals. The tenant, United Rentals Realty, LLC, has 2.5 years remaining on the initial lease, with 3 (5-year) options to extend. The lease features 2.5% annual rental increases throughout the initial term and option periods. A billboard lease adds an additional $28,300 to the NOI, extended to 2029 with 3% annual increases. United Rentals, Inc. has an integrated network of 1,465 rental locations in North America, 14 in Europe, 27 in Australia and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province. The United Rentals is located along S. Wells St and S. Wentworth Ave. with a combined (7,500 VPD). The site benefits from nearby direct on/off ramp access to Interstate 90 & 94, averaging over 318,000 vehicles passing by daily. The asset is located in a dense retail corridor, with numerous national/credit tenants including Target, Walgreens, Starbucks, Davita, Fresenius, Wendy’s, Dunkin’, Home Depot. The subject property is in close proximity to Guaranteed Rate Field, a 40,600 seat Major League Baseball stadium. The 5-mile trade area is supported by more than 790,000 residents and 778,000 employees with an average household income of $97,353. The property size is 12,000 square feet.
Key Highlights
- Absolute Net (NN) Lease: Minimal landlord responsibilities.
- Strong Tenant: Leased to United Rentals, Inc., the world's largest equipment rental company.
- Rental Increases: Features 2.5% annual rental increases throughout the initial term and option periods.
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
$166,018
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
3.92%
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%
$3,320,360
$3.3M
Cap Rate 7%
$2,371,686
$2.4M
Cap Rate 9%
$1,844,644
$1.8M
Market Conditions
NOI Build-Up for 12,000 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
$259.2K $21.60/SF
− Vacancy
−$22.0K −$1.84/SF
EGI
$237.2K $19.76/SF
− OpEx
−$71.2K −$5.93/SF
NOI
$166.0K $13.83/SF
Area
Chicago, IL
Vacancy
8.50%
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%
$3,320,360
Cap Rate 7%
$2,371,686
Cap Rate 9%
$1,844,644
Alternative Uses
Best Use
Retail
$2.37M
$2.08M – $2.77M
NOI $166,018 @ 7.0% cap · market cap 3.92%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.66M
$4.95M – $6.60M
NOI $396,058 @ 7.0% cap · market cap 9.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
745
Businesses Nearby
44k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
BP
Shops & Services
18,663 visits/mo
0.3 miles
Mobil
Shops & Services
13,876 visits/mo
0.2 miles
BP
Shops & Services
11,441 visits/mo
0.5 miles
Demographics for 60609, IL
65,770
Population
26,122
Households
2.5
Avg Household Size
34
Median Age
20%
College-Educated
76%
High-School Grad
7.7 sq mi
ZIP Area
8,542
Density / Sq Mi
$54,142
Median Household Income
$37,694
Median Earnings
$1,070
Median Rent
$251,600
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - NNN leased United Rentals property with billboard income in Chicago.
Where is this retail space located?
The property is located at 4027 S Wells St Chicago, IL.
What is the asking price?
The asking price for this property is $4,233,000.
What are key features of this property?
This property features: Absolute Net (NN) Lease: Minimal landlord responsibilities.; Strong Tenant: Leased to United Rentals, Inc., the world's largest equipment rental company.; Rental Increases: Features 2.5% annual rental increases throughout the initial term and option periods.
