South Elgin Retail Investment
For Sale
Contact for pricing
436 S Randall Rd, South Elgin, IL 60177
New construction retail space with long-term lease in affluent area.
Property Size21,734 SF
Price / SF$184.04
Days on Market174
Property Features for 436 S Randall Rd
General Information
Standard status
Active
Size
21,734 SF
Class
A
Property subtype
Retail
Zoning
B-2
Occupancy
100%
Investment Type
Net Lease
Net Operating Income
$249,941
Building Details
Year Built
2021
Buildings
1
Units
1
Tenancy
Single
Listing Agency:
Riser Retail Group Carmel
Listed By:
John F. Riser · License #RB14036150
Source:
Crexi
Added: Feb 18
Changed: Aug 8
Last Checked: Aug 8 at 6:40AM
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 Riser Retail Group Carmel
Investment Insights
Based on property information with market context.
This is a newly constructed Class A retail space, built in 2021. The property is 100% occupied and features a brand new long-term lease extending to June 2031. Located within an affluent Chicago MSA, the property benefits from high income demographics, with an average household income exceeding $200,000 within a 1-mile radius. The store opened in 2021. The parking field was updated in the summer of 2022. The location offers multiple points of ingress and egress and experiences high traffic counts of over 38,000 vehicles per day.
Key Highlights
- Brand new long term lease, expiring June 2031.
- New 2021 Class "A" construction.
- High traffic counts with over 38,000 vehicles per day.
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
$262,347
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
6.56%
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%
$5,246,940
$5.2M
Cap Rate 7%
$3,747,814
$3.7M
Cap Rate 9%
$2,914,967
$2.9M
Market Conditions
NOI Build-Up for 21,734 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
$391.2K $18.00/SF
− Vacancy
−$16.4K −$0.76/SF
EGI
$374.8K $17.24/SF
− OpEx
−$112.4K −$5.17/SF
NOI
$262.3K $12.07/SF
Area
Kane County, IL
Vacancy
4.20%
Lease Rate
$18.00 /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%
$5,246,940
Cap Rate 7%
$3,747,814
Cap Rate 9%
$2,914,967
Alternative Uses
Best Use
Retail
$3.75M
$3.28M – $4.37M
NOI $262,347 @ 7.0% cap · market cap 6.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.50M
$6.57M – $8.75M
NOI $525,263 @ 7.0% cap · market cap 13.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
639
Businesses Nearby
260k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 32%
Home Improvements & Furnishings 22%
Groceries 17%
Shops & Services 16%
T.J. Maxx
Apparel
48,433 visits/mo
0.5 miles
Jewel-Osco
Groceries
45,378 visits/mo
0.3 miles
Ross Dress for Less
Apparel
33,562 visits/mo
0.4 miles
The Home Depot
Home Improvements & Furnishings
33,519 visits/mo
0.2 miles
Best Buy
Electronics
24,434 visits/mo
0.1 miles
Demographics for 60177, IL
24,361
Population
8,700
Households
2.8
Avg Household Size
37
Median Age
38%
College-Educated
91%
High-School Grad
8.9 sq mi
ZIP Area
2,737
Density / Sq Mi
$123,700
Median Household Income
$59,266
Median Earnings
$1,612
Median Rent
$296,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - New construction retail space with long-term lease in affluent area.
Where is this retail space located?
The property is located at 436 S Randall Rd South Elgin, IL.
What is the asking price?
The asking price for this property is $4,000,000.
What are key features of this property?
This property features: Brand new long term lease, expiring June 2031.; New 2021 Class "A" construction.; High traffic counts with over 38,000 vehicles per day.
