Building Details

Building Size 8,000 SF

Year Built 2006

Stories 1

Units 6

Tenancy Multi

Listing Agency: Berkshire Hathaway HomeServices Starck Real Estate Show Phone

Listed By: Richard Virgl · License #471018796 Show Phone

Source: Midwestrealestate

Added: Feb 15 Changed: Aug 9 Last Checked: Aug 9 at 1:07PM

Report an Issue

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 Berkshire Hathaway HomeServices Starck Real Estate

Investment Insights

Based on property information with market context.

This retail strip center contains 6 units and was built in 2006. All suites are leased, with 3 tenants currently occupying the property, including 2 national brands. The asset is operated under NNN lease terms, providing a defined structure for the existing tenancy.

Key Highlights

• 6 retail units in the center
• 3 current tenants occupy the property
• 2 tenants are national brands

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

$77,196

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

4.82%

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%

$1,543,920 $1.5M

Cap Rate 7%

$1,102,800 $1.1M

Cap Rate 9%

$857,733 $857.7K

Market Conditions

NOI Build-Up for 8,000 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

$120.0K $15.00/SF

− Vacancy

−$9.7K −$1.22/SF

EGI

$110.3K $13.79/SF

− OpEx

−$33.1K −$4.14/SF

NOI

$77.2K $9.65/SF

Area

McHenry County, IL

Vacancy

8.10%

Lease Rate

$15.00 /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%

$1,543,920

Cap Rate 7%

$1,102,800

Cap Rate 9%

$857,733

Alternative Uses

Best Use

Retail

$1.10M

$965.0K – $1.29M (±1% cap)

NOI $77,196 @ 7.0% cap · market cap 4.82%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.76M

$2.42M – $3.22M (±1% cap)

NOI $193,342 @ 7.0% cap · market cap 12.08%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Strip malls

Suggested Use

Top Pick Law Firm Parking Lot & Garage (Bike/Boat/Book/etc) Store Auto Parts Store Hotel & Motel Furniture & Home Goods

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

100%

Occupancy

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

188

Businesses Nearby

Explore this area Business Placement

Demographics for 60156, IL

28,982

Population

10,150

Households

2.9

Avg Household Size

37

Median Age

37%

College-Educated

96%

High-School Grad

10.6 sq mi

ZIP Area

2,734

Density / Sq Mi

$113,491

Median Household Income

$54,370

Median Earnings

$1,634

Median Rent

$296,400

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this strip malls located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Strip mall - Fully occupied retail center with NNN lease structure and national-brand tenancy.

Where is this strip mall located?

The property is located at 4590 Princeton Lane Lake in the Hills, IL.

What is the asking price?

The asking price for this property is $1,600,000.

What are key features of this property?

This property features: 6 retail units in the center; 3 current tenants occupy the property; 2 tenants are national brands