Freestanding Drive-Through
New
For Sale
$1,350,000
720 E Rand Road, Mount Prospect, IL 60056
Masonry restaurant building with a commercial kitchen, walk-in cooler, and included furniture, fixtures, and equipment.
Property Size2,533 SF
Lot Size0.54 Acres
Price / SF$532.96
Days on Market5
Property Features for 720 E Rand Road
General Information
Standard status
Active
Size
2,533 SF
Total Parking Spaces
25
Lot size
0.54 Acres
Property subtype
Commercial
Zoning
RTAIL
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Traffic Count
17,600 vehicles/day
Taxes and HOA fees
Annual Taxes
$39,701
Building Details
Building Size
2,533 SF
Year Built
1994
Stories
2
Units
1
Construction
masonry
Listing Agency:
RE/MAX At Home
(847) 255-1000
Listed By:
Basel Tarabein · License #IL 471008459
(847) 255-1000
Source:
Birdrealtysells
Added: Aug 5
Changed: Aug 6
Last Checked: Aug 8 at 11:06AM
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 At Home
Investment Insights
Based on property information with market context.
This freestanding masonry restaurant was built in 1994 and contains 2,533 square feet on a 23,391-square-foot site. The existing layout includes a commercial kitchen, black iron exhaust hoods, fire-suppression systems, a walk-in cooler, and furniture, fixtures, and equipment. Building improvements include updated windows, rooftop heating and HVAC equipment, tuckpointing, and 200-amp electrical service. Drive-through operations are supported by a curb cut onto Rand Road, and the site provides approximately 25 parking spaces.
The property is positioned in the Rand Road retail and fast-food corridor in Mount Prospect, just south of the signalized Rand Road and Central Road intersection and across from Menards. Rand Road exposure is reported at approximately 17,600 vehicles per day. Walmart, Aldi, Subway, Bowlero, Texas Roadhouse, Buona Beef, and Dunkin' are identified among the surrounding retailers and restaurants.
A second floor is also present, with upward expansion or a second-floor outdoor dining area subject to municipal approval.
The property is positioned in the Rand Road retail and fast-food corridor in Mount Prospect, just south of the signalized Rand Road and Central Road intersection and across from Menards. Rand Road exposure is reported at approximately 17,600 vehicles per day. Walmart, Aldi, Subway, Bowlero, Texas Roadhouse, Buona Beef, and Dunkin' are identified among the surrounding retailers and restaurants.
A second floor is also present, with upward expansion or a second-floor outdoor dining area subject to municipal approval.
Key Highlights
- 2,533‑square‑foot freestanding masonry restaurant on a 23,391‑square‑foot site
- Drive‑through capability with a curb cut onto Rand Road
- Approximately 25 parking spaces and reported exposure to 17,600 vehicles per day
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
$42,402
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
3.14%
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%
$848,040
$848.0K
Cap Rate 7%
$605,743
$605.7K
Cap Rate 9%
$471,133
$471.1K
Market Conditions
NOI Build-Up for 2,533 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
$60.8K $24.00/SF
− Vacancy
−$4.3K −$1.68/SF
EGI
$56.5K $22.32/SF
− OpEx
−$14.1K −$5.58/SF
NOI
$42.4K $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%
$848,040
Cap Rate 7%
$605,743
Cap Rate 9%
$471,133
Alternative Uses
Best Use
Specialty Retail
$605.7K
$530.0K – $706.7K
NOI $42,402 @ 7.0% cap · market cap 3.14%
Second Best
Industrial
$155.8K
$136.3K – $181.7K
NOI $10,904 @ 7.0% cap · market cap 0.81%
Theoretical Best
Office A
$874.5K
$765.2K – $1.02M
NOI $61,217 @ 7.0% cap · market cap 4.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
17,600 VPD
Traffic count
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
902
Businesses Nearby
227k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 49%
Home Improvements & Furnishings 24%
Dining 22%
Shops & Services 4%
Walmart
Superstores
110,749 visits/mo
0.4 miles
Menards
Home Improvements & Furnishings
53,779 visits/mo
0.2 miles
Texas Roadhouse
Dining
30,063 visits/mo
0.4 miles
Andy's Frozen Custard
Dining
11,893 visits/mo
0.4 miles
Buona
Dining
8,432 visits/mo
0.4 miles
Demographics for 60056, IL
57,177
Population
23,202
Households
2.5
Avg Household Size
41
Median Age
49%
College-Educated
92%
High-School Grad
10.9 sq mi
ZIP Area
5,246
Density / Sq Mi
$104,168
Median Household Income
$54,158
Median Earnings
$1,456
Median Rent
$376,300
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 - Masonry restaurant building with a commercial kitchen, walk-in cooler, and included furniture, fixtures, and equipment.
Where is this conventional restaurant located?
The property is located at 720 E Rand Road Mount Prospect, IL.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 2,533‑square‑foot freestanding masonry restaurant on a 23,391‑square‑foot site; Drive‑through capability with a curb cut onto Rand Road; Approximately 25 parking spaces and reported exposure to 17,600 vehicles per day
