Conventional Restaurant with Outdoor
For Sale
$799,000
707 Freeport Road, Sterling, IL 61081
Equipped hospitality property with dining, gaming, kitchen, and outdoor seating.
Property Size5,955 SF
Days on Market89
Property Features for 707 Freeport Road
General Information
Standard status
Active
Size
5,955 SF
Property subtype
Commercial
Restaurant
Commercial Hood
Yes
Patio
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$6,282
Amenities
liquor room
office/camera room
employee restroom
fireplace
basement storage
Building Details
Building Size
5,955 SF
Year Built
1981
Stories
1
Units
1
Listing Agency:
RE/MAX Sauk Valley
(815) 625-3722
Listed By:
Selznick Garcia
(815) 625-3722
Source:
Birdrealtysells
Added: Jun 4
Changed: Aug 31
Last Checked: Aug 31 at 12:15AM
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 RE/MAX Sauk Valley
Investment Insights
Based on property information with market context.
This conventional restaurant property at 707 Freeport Road includes a main dining room with booths, tables, and bar seating, plus a separate gaming area with pool tables and gaming machines. The commercial kitchen is outfitted with an approximately 18 foot hood, walk-in cooler and freezer, fryers, griddle, broiler, prep refrigeration, stainless steel work surfaces, ice machine, and storage. The building also contains a liquor room, office and camera room, employee restroom, jukebox, fireplace, and basement storage with sump pumps.
Outdoor amenities include a patio measuring approximately 29' x 35' and on-site parking for approximately 50+ vehicles. Five furnaces, central air conditioning, and 2 mini-split units serve the building. The sale includes furniture, equipment, inventory, and stocked liquor and food supplies. Built in 1981, the property is located in Sterling, Illinois.
Outdoor amenities include a patio measuring approximately 29' x 35' and on-site parking for approximately 50+ vehicles. Five furnaces, central air conditioning, and 2 mini-split units serve the building. The sale includes furniture, equipment, inventory, and stocked liquor and food supplies. Built in 1981, the property is located in Sterling, Illinois.
Key Highlights
- Restaurant layout includes dining room, bar seating, and a separate gaming area
- Approximately 18 foot commercial kitchen hood with extensive food‑service equipment
- Outdoor patio measures approximately 29' x 35'
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
$29,544
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%
$590,880
$590.9K
Cap Rate 7%
$422,057
$422.1K
Cap Rate 9%
$328,267
$328.3K
Market Conditions
NOI Build-Up for 5,955 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
$44.7K $7.50/SF
− Vacancy
−$2.5K −$0.41/SF
EGI
$42.2K $7.09/SF
− OpEx
−$12.7K −$2.13/SF
NOI
$29.5K $4.96/SF
Area
Whiteside County, IL
Vacancy
5.50%
Lease Rate
$7.50 /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%
$590,880
Cap Rate 7%
$422,057
Cap Rate 9%
$328,267
Alternative Uses
Best Use
Specialty Retail
$1.11M
$974.8K – $1.30M
NOI $77,981 @ 7.0% cap · market cap 9.76%
Second Best
Industrial
$422.1K
$369.3K – $492.4K
NOI $29,544 @ 7.0% cap · market cap 3.70%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
376
Businesses Nearby
66k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 60%
Shops & Services 24%
Apparel 14%
Beauty & Spa 2%
McDonald's
Dining
26,437 visits/mo
0.2 miles
Goodwill
Apparel
9,177 visits/mo
0.1 miles
Shell
Shops & Services
9,003 visits/mo
0.2 miles
Wendy's
Dining
7,813 visits/mo
0.3 miles
Phillips 66
Shops & Services
6,570 visits/mo
0.1 miles
Demographics for 61081, IL
21,064
Population
9,753
Households
2.2
Avg Household Size
43
Median Age
20%
College-Educated
91%
High-School Grad
124.4 sq mi
ZIP Area
169
Density / Sq Mi
$60,854
Median Household Income
$40,497
Median Earnings
$791
Median Rent
$121,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Equipped hospitality property with dining, gaming, kitchen, and outdoor seating.
Where is this conventional restaurant located?
The property is located at 707 Freeport Road Sterling, IL.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Restaurant layout includes dining room, bar seating, and a separate gaming area; Approximately 18 foot commercial kitchen hood with extensive food‑service equipment; Outdoor patio measures approximately 29' x 35'
