Assembled Commercial
For Sale
$550,000
507 Springfield Avenue, Urbana, IL 61801
COMMERCIAL - Urbana, IL
Property Size2,000 SF
Lot Size0.54 Acres
Price / SF$275
Days on Market51
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) 356-6100
Added: Jun 29
Changed: Aug 4
Last Checked: Aug 18 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 commercial land offering combines two assembled parcels totaling 0.54 acres at 507 Springfield Avenue and 510 W Elm Street. The 0.41-acre Elm Street parcel is an on-grade parking lot zoned Mixed Office Residential (MOR). The 0.13-acre Springfield Avenue parcel contains an approximately 2,000-square-foot office building constructed in 1965, with central air, and carries B-2 Neighborhood Business-Arterial District zoning.
The stated zoning classifications allow residential and commercial uses, including mixed-use buildings that integrate both functions. The property is in downtown Urbana and is located minutes from the University of Illinois campus. Existing improvements, separate zoning designations, and completed site assembly provide a defined starting point for evaluating future development plans.
The stated zoning classifications allow residential and commercial uses, including mixed-use buildings that integrate both functions. The property is in downtown Urbana and is located minutes from the University of Illinois campus. Existing improvements, separate zoning designations, and completed site assembly provide a defined starting point for evaluating future development plans.
Key Highlights
- 0.54‑acre assemblage comprising 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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,484
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
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Combined urban parcels include an on-grade parking lot and an office building within established commercial zoning districts.
Where is this commercial land 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 comprising 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
