Listing Agency: The Real Estate Group, Inc

Listed By: Matt Garrison (MattGarrisonHomes@gmail.com)

Source: Curveyrealestate

Added: Aug 30 Changed: Aug 31 Last Checked: Aug 31 at 8:46AM

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Investment Insights

Based on property information with market context.

This mixed-use property combines a residential layout with a former commercial portion designed around office, lobby, storage, and work areas. The residential side includes 3 bedrooms, 2.5 baths, a kitchen, living room, oversized family room, sunroom, primary suite, sitting area, and several bonus rooms. The layout also offers potential for up to 6 bedrooms and is plumbed for an additional bath. The property measures 2,512 square feet, with an additional 2,000 sq ft of commercial-area space.

Recent improvements include new electrical service, 2 electrical breaker boxes, updated bathrooms, new flooring and carpeting, new drywall and ceilings, new light fixtures and ceiling fans, and new interior doors. The residential area has newer central air and heat, while the far south side includes a new window heating and air-conditioning unit. The property occupies over 2 acres at 526 N Railroad Avenue in Blue Mound, Illinois, and is being sold AS-IS.

Key Highlights

• 3 bedrooms with potential for up to 6 bedrooms and 2.5 baths
• Additional 2,000 sq ft of office, storage, and work‑area space
• Property measures 2,512 square feet on over 2 acres

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

$16,956

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

8.70%

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%

$339,120 $339.1K

Cap Rate 7%

$242,229 $242.2K

Cap Rate 9%

$188,400 $188.4K

Market Conditions

NOI Build-Up for 2,512 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

$30.1K $12.00/SF

− Vacancy

−$3.0K −$1.20/SF

EGI

$27.1K $10.80/SF

− OpEx

−$10.2K −$4.05/SF

NOI

$17.0K $6.75/SF

Area

Macon County, IL

Vacancy

10.00%

Lease Rate

$12.00 /SF/Yr

Expense Ratio

37.50%

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%

$339,120

Cap Rate 7%

$242,229

Cap Rate 9%

$188,400

Alternative Uses

Best Use

Office B

$284.9K

$249.3K – $332.3K (±1% cap)

NOI $19,940 @ 7.0% cap · market cap 10.23%

Second Best

Mixed Use

$242.2K

$212.0K – $282.6K (±1% cap)

NOI $16,956 @ 7.0% cap · market cap 8.70%

Theoretical Best

Specialty Retail

$421.9K

$369.2K – $492.3K (±1% cap)

NOI $29,535 @ 7.0% cap · market cap 15.15%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office Units

Suggested Use

Top Pick Auto Repair Shop Building Supply (Bike/Boat/Book/etc) Store Grocery & Convenience Store Hair Salon Dental Office

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

Location Intelligence

Trade Area within ½ mile

77

Businesses Nearby

Explore this area Business Placement

Demographics for 62513, IL

1,716

Population

730

Households

2.4

Avg Household Size

39

Median Age

27%

College-Educated

94%

High-School Grad

67.8 sq mi

ZIP Area

25

Density / Sq Mi

$78,813

Median Household Income

$48,802

Median Earnings

$871

Median Rent

$125,900

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Flexible building combines residential rooms, office space, storage, and updated interior systems on over 2 acres.

Where is this mixed-use property located?

The property is located at 526 N Railroad Avenue Blue Mound, IL.

What is the asking price?

The asking price for this property is $195,000.

What are key features of this property?

This property features: 3 bedrooms with potential for up to 6 bedrooms and 2.5 baths; Additional 2,000 sq ft of office, storage, and work‑area space; Property measures 2,512 square feet on over 2 acres