Assembled Mixed-Use Development
For Sale
$550,000
507 Springfield Avenue, Urbana, IL 61801
Commercial Sale, Urbana, IL
Property Size2,000 SF
Lot Size0.54 Acres
Price / SF$275
Days on Market99
Property Features for 507 Springfield Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
West Springfield Ave in downtown Urbana
Subdivision
Urbana
Standard status
Active
APN
922117110024
Lot size
0.54 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Lot pt 3 Sutton's Sub & Lot 4 Sutton's Sub
Tax Annual Amount
11121
Legal Description
Lot pt 3 Sutton's Sub & Lot 4 Sutton's Sub
Utilities
Cooling system
Central Air
Building Details
Year built
1965
Floors in Building
1
Number of units
1
Listing Agency:
KELLER WILLIAMS-TREC · Keller Williams Realty
(217) 356-6100
Listed By:
Joe Zalabak · License #475151471
(217) 721-5855
Added: Jun 29
Changed: Aug 20
Last Checked: Oct 5 at 7:06AM
MLS# 12690723
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This assembled offering combines two Urbana parcels totaling 0.54 acres. The 0.41-acre component at 510 W Elm Street is an on-grade parking lot zoned Mixed Office Residential (MOR). The 0.13-acre parcel at 507 W Springfield Avenue includes an approximately 2,000-square-foot office building, central air, and B-2 Neighborhood Business-Arterial District zoning; the building was constructed in 1965.
The property is in downtown Urbana, minutes from the University of Illinois campus. The two zoning classifications support residential and commercial uses, including mixed-use development with business and residential components in the same structure. The completed site assembly brings the parcels together for a coordinated redevelopment plan.
The property is in downtown Urbana, minutes from the University of Illinois campus. The two zoning classifications support residential and commercial uses, including mixed-use development with business and residential components in the same structure. The completed site assembly brings the parcels together for a coordinated redevelopment plan.
Key Highlights
- 0.54‑acre assemblage combining 510 W Elm Street and 507 W Springfield Avenue
- 0.41‑acre on‑grade parking lot zoned Mixed Office Residential (MOR)
- 0.13‑acre parcel with an approximately 2,000‑square‑foot office building
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
$20,358
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
3.70%
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%
$407,160
$407.2K
Cap Rate 7%
$290,829
$290.8K
Cap Rate 9%
$226,200
$226.2K
Market Conditions
NOI Build-Up for 2,000 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
$34.8K $17.40/SF
− Vacancy
−$7.7K −$3.83/SF
EGI
$27.1K $13.57/SF
− OpEx
−$6.8K −$3.39/SF
NOI
$20.4K $10.18/SF
Area
Champaign County, IL
Vacancy
22.00%
Lease Rate
$17.40 /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%
$407,160
Cap Rate 7%
$290,829
Cap Rate 9%
$226,200
Alternative Uses
Best Use
Office B
$290.8K
$254.5K – $339.3K
NOI $20,358 @ 7.0% cap · market cap 3.70%
Second Best
Mixed Use
$200.0K
$175.0K – $233.3K
NOI $14,000 @ 7.0% cap · market cap 2.55%
Theoretical Best
Office A
$416.1K
$364.1K – $485.4K
NOI $29,126 @ 7.0% cap · market cap 5.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,274
Businesses Nearby
Explore this area
Business Placement
Demographics for 61801, IL
27,658
Population
13,468
Households
2.1
Avg Household Size
26
Median Age
65%
College-Educated
98%
High-School Grad
5.4 sq mi
ZIP Area
5,122
Density / Sq Mi
$37,948
Median Household Income
$26,394
Median Earnings
$950
Median Rent
$184,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two parcels combine an office building, on-grade parking, and zoning supporting residential and commercial development.
Where is this mixed-use property located?
The property is located at 507 Springfield Avenue Urbana, IL.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 0.54‑acre assemblage combining 510 W Elm Street and 507 W Springfield Avenue; 0.41‑acre on‑grade parking lot zoned Mixed Office Residential (MOR); 0.13‑acre parcel with an approximately 2,000‑square‑foot office building
