Downtown Sterling Class A
For Sale
Contact for pricing
403 E 3rd St, Sterling, IL
Class A office building in downtown Sterling, Illinois for sale.
Property Size13,000 SF
Lot Size0.62 Acres
Price / SF$126.92
Days on Market332
Property Features for 403 E 3rd St
General Information
Standard status
Active
Size
13,000 SF
Lot size
0.62 Acres
Property subtype
OFFICE
Listing Agency:
Joseph Rossi & Associates, Inc (JRA) - Corporate
(312) 523-3176
Listed By:
Scott Fitzgerald · License #471014248
(312) 523-3176
Source:
Moodyscre
Added: Sep 19, 2025
Changed: Aug 13
Last Checked: Aug 16 at 5:50AM
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 Joseph Rossi & Associates, Inc (JRA) - Corporate
Investment Insights
Based on property information with market context.
This 13,000 square foot Class A masonry office building is located in downtown Sterling, Illinois, approximately 100 miles west of Chicago and 45 miles east of the Quad Cities. Recent upgrades to the property include a new roof, ADA-compliant restrooms, and parking improvements. The building is situated near City Hall, the U.S. Post Office, and the courthouse. Anchored by a national CPA and consulting firm, the property has maintained 100% occupancy since 1992, offering a stable investment opportunity.
Key Highlights
- 100% occupancy since 1992, providing a stable, high‑credit investment.
- Anchored by a top national CPA and consulting firm.
- Located in downtown Sterling, Illinois, near City Hall, the U.S. Post Office, and the courthouse.
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
$86,697
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
5.25%
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%
$1,733,940
$1.7M
Cap Rate 7%
$1,238,529
$1.2M
Cap Rate 9%
$963,300
$963.3K
Market Conditions
NOI Build-Up for 13,000 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
$148.2K $11.40/SF
− Vacancy
−$32.6K −$2.51/SF
EGI
$115.6K $8.89/SF
− OpEx
−$28.9K −$2.22/SF
NOI
$86.7K $6.67/SF
Area
Whiteside County, IL
Vacancy
22.00%
Lease Rate
$11.40 /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%
$1,733,940
Cap Rate 7%
$1,238,529
Cap Rate 9%
$963,300
Alternative Uses
Best Use
Office B
$1.24M
$1.08M – $1.44M
NOI $86,697 @ 7.0% cap · market cap 5.25%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.43M
$2.13M – $2.84M
NOI $170,235 @ 7.0% cap · market cap 10.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
761
Businesses Nearby
Explore this area
Business Placement
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 building - Class A office building in downtown Sterling, Illinois for sale.
Where is this office building located?
The property is located at 403 E 3rd St Sterling, IL.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: 100% occupancy since 1992, providing a stable, high‑credit investment.; Anchored by a top national CPA and consulting firm.; Located in downtown Sterling, Illinois, near City Hall, the U.S. Post Office, and the courthouse.
