Freestanding Restaurant with
For Sale
$1,350,000
720 E Rand Rd, Mount Prospect, IL 60056
Fully equipped freestanding restaurant with commercial kitchen infrastructure, parking, and direct drive-through access from Rand Road.
Property Size2,533 SF
Lot Size0.54 Acres
Price / SF$532.96
Days on Market67
Property Features for 720 E Rand Rd
General Information
Standard status
Active
Size
2,533 SF
Total Parking Spaces
25
Lot size
0.54 Acres
Property subtype
Commercial
Zoning
B-5
Site & Location
Drive-Thru
Yes
Traffic Count
17,600 vehicles/day
Road Access
Yes
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Building Details
Year Built
1994
Buildings
1
Stories
2
Construction
masonry
Listing Agency:
RE/MAX At Home
(847) 255-1970
Listed By:
Basel Tarabein, GRI · License #IL 471008459
Source:
Searchillinoishomesforsale
Added: Jun 24
Changed: Aug 28
Last Checked: Aug 29 at 10:33AM
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 contains 2,533 square feet on a 23,391-square-foot site and was built in 1994. The building includes a complete commercial kitchen, black iron exhaust hoods, fire-suppression systems, a walk-in cooler, furniture, fixtures, and equipment. Additional improvements include an updated facade and windows, upgraded rooftop heating and HVAC equipment, tuckpointing, and 200-amp electrical service. Existing drive-through operations are supported by a curb cut on Rand Road, while the site provides approximately 25 parking spaces.
The property is located at 720 E. Rand Road in Mount Prospect, just south of the signalized Rand Road and Central Road intersection and across from Menards. Rand Road exposure is estimated at approximately 17,600 vehicles per day. Nearby retailers and restaurants include Walmart, Aldi, Subway, Bowlero, Texas Roadhouse, Buona Beef, and Dunkin'. B-5 zoning applies to the property. A second floor is also present, with any expansion or outdoor dining use subject to municipal approval.
The property is located at 720 E. Rand Road in Mount Prospect, just south of the signalized Rand Road and Central Road intersection and across from Menards. Rand Road exposure is estimated at approximately 17,600 vehicles per day. Nearby retailers and restaurants include Walmart, Aldi, Subway, Bowlero, Texas Roadhouse, Buona Beef, and Dunkin'. B-5 zoning applies to the property. A second floor is also present, with any expansion or outdoor dining use subject to municipal approval.
Key Highlights
- 2,533‑square‑foot masonry restaurant on a 23,391‑square‑foot site
- Existing drive‑through with Rand Road curb cut
- Approximately 25 parking spaces and approximately 17,600 vehicles per day on Rand Road
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
Property Profile
Current Use
Lease Details
17,600 VPD
Traffic count
Yes
Paved road access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
744
Businesses Nearby
339k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 33%
Dining 18%
Home Improvements & Furnishings 16%
Apparel 16%
Walmart
Superstores
110,749 visits/mo
0.3 miles
Menards
Home Improvements & Furnishings
53,779 visits/mo
0.1 miles
Burlington
Apparel
33,037 visits/mo
0.4 miles
Texas Roadhouse
Dining
30,063 visits/mo
0.4 miles
Aldi
Groceries
28,555 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 - Fully equipped freestanding restaurant with commercial kitchen infrastructure, parking, and direct drive-through access from Rand Road.
Where is this conventional restaurant located?
The property is located at 720 E Rand Rd 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 masonry restaurant on a 23,391‑square‑foot site; Existing drive‑through with Rand Road curb cut; Approximately 25 parking spaces and approximately 17,600 vehicles per day on Rand Road
