Building Details

Year Built 1996

Year Renovated 2012

Tenancy Single

Listing Agency: Marcus & Millichap - Encino

Listed By: Lior Regenstreif · License #CA 01267761 Show Phone

Source: Crexi

Added: Nov 18, 2024 Changed: Sep 11 Last Checked: Sep 13 at 4:18AM

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Investment Insights

Based on property information with market context.

This passive net-lease opportunity allows a qualified buyer to invest in a leading national tenant with a long-term absolute net lease within a desirable Chicago neighborhood. The location benefits from strong store sales and a low rent-to-sales ratio. Jewel-Osco, Illinois' leading supermarket chain, operates 189 locations primarily within the Chicago MSA, with additional locations throughout Iowa and Indiana. Jewel-Osco maintains market dominance in the Chicago MSA and leads local grocers with the highest market share. Jewel has operated as a subsidiary of Albertsons since 1999. The property is located in Stickney, Illinois, which is part of the Chicago Metropolitan Statistical Area (MSA). Stickney offers suburban tranquility and convenient access to Chicago's job market, cultural attractions, and diverse dining scene.

Key Highlights

• Long‑term absolute net lease with a leading, national tenant (Jewel‑Osco).
• Located in a highly desirable Chicago neighborhood.
• Incredibly strong store sales.

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

$987,811

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

8.52%

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%

$19,756,220 $19.8M

Cap Rate 7%

$14,111,586 $14.1M

Cap Rate 9%

$10,975,678 $11.0M

Market Conditions

NOI Build-Up for 59,009 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

$1.42M $24.00/SF

− Vacancy

−$99.1K −$1.68/SF

EGI

$1.32M $22.32/SF

− OpEx

−$329.3K −$5.58/SF

NOI

$987.8K $16.74/SF

Area

Cook County, IL

Vacancy

7.00%

Lease Rate

$24.00 /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%

$19,756,220

Cap Rate 7%

$14,111,586

Cap Rate 9%

$10,975,678

Alternative Uses

Best Use

Specialty Retail

$14.11M

$12.35M – $16.46M (±1% cap)

NOI $987,811 @ 7.0% cap · market cap 8.52%

Second Best

Retail

$11.70M

$10.24M – $13.65M (±1% cap)

NOI $819,054 @ 7.0% cap · market cap 7.06%

Theoretical Best

Office A

$20.37M

$17.83M – $23.77M (±1% cap)

NOI $1,426,118 @ 7.0% cap · market cap 12.29%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Jewel-Osco Pharmacy Pharmacy Redbox Cinema Jewel-Osco Deli Food Market Jewel-Osco Bakery Huntington Bank ATM ... Atm

Suggested Use

Top Pick Law Firm Big Box & Wholesale Store Parking Lot & Garage (Bike/Boat/Book/etc) Store Computer & Electronic Repair Tech Support Center

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

737

Businesses Nearby

225k

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Dining 43% Shops & Services 30% Apparel 13% Groceries 12%

McDonald's Dining

39,211 visits/mo 0.3 miles

Marshalls Apparel

28,190 visits/mo 0.1 miles

Aldi Groceries

26,817 visits/mo 0.1 miles

Chase Bank Shops & Services

20,392 visits/mo 0.5 miles

Starbucks Dining

19,344 visits/mo 0.2 miles

Demographics for 60402, IL

64,706

Population

25,111

Households

2.6

Avg Household Size

37

Median Age

25%

College-Educated

85%

High-School Grad

5.7 sq mi

ZIP Area

11,352

Density / Sq Mi

$73,993

Median Household Income

$42,802

Median Earnings

$1,168

Median Rent

$277,800

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this grocery and convenience stores located? What is the asking price? Find similar properties What are key features of this property?

Similar Off Market Nearby

• Jewel-Osco — 7122 40th St, Stickney, IL 60402
• Berwyn Fruit Market — 3811 S Harlem Ave, Berwyn, IL 60402

Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Long-term net lease with leading national tenant in Chicago MSA.

Where is this grocery and convenience store located?

The property is located at 7122 40th St Stickney, IL.

What is the asking price?

The asking price for this property is $11,600,352.

What are key features of this property?

This property features: Long‑term absolute net lease with a leading, national tenant (Jewel‑Osco).; Located in a highly desirable Chicago neighborhood.; Incredibly strong store sales.