Machesney Park Flex/Office
For Sale
Contact for pricing
4055 Steele Dr., Machesney Park, IL 61115
Flex/office asset in Machesney Park with income potential.
Property Size30,090 SF
Price / SF$98.04
Days on Market195
Property Features for 4055 Steele Dr.
General Information
Standard status
Active
Size
30,090 SF
Class
B
Property subtype
Industrial
Zoning
IG
Occupancy
43%
Lease Type
Modified Gross
Building Details
Year Built
2002
Year Renovated
2017
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
Bryant Commercial Group
(815) 218-1371
Listed By:
Nathan Bryant · License #IL 471.013468
Source:
Crexi
Added: Feb 6
Changed: Aug 15
Last Checked: Aug 20 at 12:00PM
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 Bryant Commercial Group
Investment Insights
Based on property information with market context.
Located in the commercial hub of Machesney Park, the property at 4055 Steele Drive offers an opportunity for investors and end-users. This flex/office asset provides immediate income and upside potential. The property is zoned for industrial use and is adaptable to light industrial, distribution, or back-office operations. The property size is 30090 square feet.
Key Highlights
- Strategic location in the thriving commercial hub of Machesney Park.
- High‑quality flex/office asset.
- Immediate income potential.
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
$220,620
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
7.48%
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%
$4,412,400
$4.4M
Cap Rate 7%
$3,151,714
$3.2M
Cap Rate 9%
$2,451,333
$2.5M
Market Conditions
NOI Build-Up for 30,090 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
$361.1K $12.00/SF
− Vacancy
−$21.7K −$0.72/SF
EGI
$339.4K $11.28/SF
− OpEx
−$118.8K −$3.95/SF
NOI
$220.6K $7.33/SF
Area
Rockford, IL
Vacancy
6.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
35.00%
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%
$4,412,400
Cap Rate 7%
$3,151,714
Cap Rate 9%
$2,451,333
Alternative Uses
Best Use
Flex RnD
$3.15M
$2.76M – $3.68M
NOI $220,620 @ 7.0% cap · market cap 7.48%
Second Best
Industrial
$2.89M
$2.53M – $3.37M
NOI $202,382 @ 7.0% cap · market cap 6.86%
Theoretical Best
Office A
$8.00M
$7.00M – $9.34M
NOI $560,252 @ 7.0% cap · market cap 18.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
577
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 61115, IL
22,599
Population
8,983
Households
2.5
Avg Household Size
41
Median Age
18%
College-Educated
91%
High-School Grad
10.6 sq mi
ZIP Area
2,132
Density / Sq Mi
$73,771
Median Household Income
$44,141
Median Earnings
$1,111
Median Rent
$160,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Flex/office asset in Machesney Park with income potential.
Where is this flex space located?
The property is located at 4055 Steele Dr. Machesney Park, IL.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Strategic location in the thriving commercial hub of Machesney Park.; High‑quality flex/office asset.; Immediate income potential.
