Updated Office Unit with Fenced
For Sale
$115,000
Pending
509 Pearl Street, Godfrey, IL 62035
Residentially zoned cottage adapted for commercial use, with special-use permit potential and secured off-street parking.
Property Size714 SF
Days on Market34
Property Features for 509 Pearl Street
General Information
Standard status
Pending
Size
714 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,540
Building Details
Building Size
714 SF
Year Built
1940
Buildings
1
Listing Agency:
Tarrant and Harman Real Estate and Auction Co
(618) 531-2256
Listed By:
Whitney McIver · License #475114662
Source:
Nesterrealty
Added: Jul 29
Changed: Aug 29
Last Checked: Aug 29 at 9:16PM
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 Tarrant and Harman Real Estate and Auction Co
Investment Insights
Based on property information with market context.
Built in 1940, this compact office unit occupies a former one-bedroom, one-bath cottage that has been updated for commercial use. The property retains a residential-scale layout while offering a client-facing setting for a small business. Capped plumbing remains from its prior operation as a hair salon, and the most recent use was a pet spa.
The property is currently zoned residential, with the possibility of accommodating various business types through a special use permit. A large paved and fenced parking area is located behind the building and provides space for approximately 8–10 vehicles. Situated at 509 Pearl Street in Godfrey, Illinois, the property offers a distinctive small-format setting for an office or other approved commercial use.
The property is currently zoned residential, with the possibility of accommodating various business types through a special use permit. A large paved and fenced parking area is located behind the building and provides space for approximately 8–10 vehicles. Situated at 509 Pearl Street in Godfrey, Illinois, the property offers a distinctive small-format setting for an office or other approved commercial use.
Key Highlights
- Office unit in a former one‑bedroom, one‑bath cottage
- Updated for commercial use; most recently operated as a pet spa
- Residential zoning with business‑use options subject to a special use permit
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
$8,762
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
7.62%
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%
$175,240
$175.2K
Cap Rate 7%
$125,171
$125.2K
Cap Rate 9%
$97,356
$97.4K
Market Conditions
NOI Build-Up for 714 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
$12.9K $18.00/SF
− Vacancy
−$334 −$0.47/SF
EGI
$12.5K $17.53/SF
− OpEx
−$3.8K −$5.26/SF
NOI
$8.8K $12.27/SF
Area
Madison County, IL
Vacancy
2.60%
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%
$175,240
Cap Rate 7%
$125,171
Cap Rate 9%
$97,356
Alternative Uses
Best Use
Office B
$161.6K
$141.4K – $188.5K
NOI $11,310 @ 7.0% cap · market cap 9.83%
Second Best
Retail
$125.2K
$109.5K – $146.0K
NOI $8,762 @ 7.0% cap · market cap 7.62%
Theoretical Best
Office A
$194.6K
$170.3K – $227.1K
NOI $13,623 @ 7.0% cap · market cap 11.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
204
Businesses Nearby
Explore this area
Business Placement
Demographics for 62035, IL
16,172
Population
7,145
Households
2.3
Avg Household Size
47
Median Age
33%
College-Educated
96%
High-School Grad
43.8 sq mi
ZIP Area
369
Density / Sq Mi
$91,696
Median Household Income
$51,693
Median Earnings
$1,158
Median Rent
$179,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office units - Residentially zoned cottage adapted for commercial use, with special-use permit potential and secured off-street parking.
Where is this office units located?
The property is located at 509 Pearl Street Godfrey, IL.
What is the asking price?
The asking price for this property is $115,000.
What are key features of this property?
This property features: Office unit in a former one‑bedroom, one‑bath cottage; Updated for commercial use; most recently operated as a pet spa; Residential zoning with business‑use options subject to a special use permit
