Flex Office and Industrial
For Sale
Contact for pricing
4055 Steele Dr, Machesney Park, IL 61115
Industrial-zoned flex/office property with approximately 13,000sf occupied by a corporate credit tenant.
Property Size13,000 SF
Price / SF$226.92
Days on Market223
Property Features for 4055 Steele Dr
General Information
Standard status
Active
Size
13,000 SF
Property subtype
INDUSTRIAL
Building Details
Tenancy
Single
Listing Agency:
Keller Williams Realty Signature LP2
(815) 200-6004
Listed By:
Nathan Bryant, CCIM · License #471013468
(815) 218-1371
Source:
Moodyscre
Added: Feb 3
Changed: Sep 8
Last Checked: Sep 13 at 11:50AM
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 Keller Williams Realty Signature LP2
Investment Insights
Based on property information with market context.
Positioned at 4055 Steele Drive in Machesney Park, this flex/office and industrial property includes approximately 13,000sf currently occupied by a corporate credit tenant, offering immediate income for an investor or owner-user.
The property is zoned for industrial use and is described as adaptable to a broad range of activities, including light industrial, distribution, and back-office operations.
For sale, the building’s flex-office configuration and industrial zoning make it suitable for users looking for a space that can support both operational and office needs.
The property is zoned for industrial use and is described as adaptable to a broad range of activities, including light industrial, distribution, and back-office operations.
For sale, the building’s flex-office configuration and industrial zoning make it suitable for users looking for a space that can support both operational and office needs.
Key Highlights
- Industrial‑zoned flex/office property with approximately 13,000 SF occupied by a tenant
- Approximately 13,000 SF currently occupied by a corporate credit tenant
- Zoned for industrial use with flexibility for light industrial, distribution, or back‑office operations
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
$106,173
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
3.60%
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%
$2,123,460
$2.1M
Cap Rate 7%
$1,516,757
$1.5M
Cap Rate 9%
$1,179,700
$1.2M
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
$132.6K $10.20/SF
− Vacancy
−$7.7K −$0.59/SF
EGI
$124.9K $9.61/SF
− OpEx
−$18.7K −$1.44/SF
NOI
$106.2K $8.17/SF
Area
Rockford, IL
Vacancy
5.80%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
15.00%
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%
$2,123,460
Cap Rate 7%
$1,516,757
Cap Rate 9%
$1,179,700
Alternative Uses
Best Use
Warehouse
$1.52M
$1.33M – $1.77M
NOI $106,173 @ 7.0% cap · market cap 3.60%
Second Best
Flex RnD
$1.36M
$1.19M – $1.59M
NOI $95,316 @ 7.0% cap · market cap 3.23%
Theoretical Best
Office A
$3.46M
$3.03M – $4.03M
NOI $242,050 @ 7.0% cap · market cap 8.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial-zoned flex/office property with approximately 13,000sf occupied by a corporate credit tenant.
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: Industrial‑zoned flex/office property with approximately 13,000 SF occupied by a tenant; Approximately 13,000 SF currently occupied by a corporate credit tenant; Zoned for industrial use with flexibility for light industrial, distribution, or back‑office operations
