Freestanding Grocery
For Sale
$450,000
725 W Chicago Street, Elgin, IL 60123
Inventory, licensed offerings, and dedicated cold-storage equipment are included.
Property Size1,296 SF
Days on Market1903
Property Features for 725 W Chicago Street
General Information
Standard status
Active
Size
1,296 SF
Total Parking Spaces
12
Property subtype
Business Opportunity
Zoning
RTAIL
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$4,003
Building Details
Building Size
1,296 SF
Stories
1
Listing Agency:
Berkshire Hathaway HomeServices Starck Real Estate
(847) 931-4663
Listed By:
Nancy Christensen
(847) 931-4663
Source:
Midwestrealestate
Added: Jun 16, 2021
Changed: Aug 28
Last Checked: Aug 29 at 10:22AM
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 Berkshire Hathaway HomeServices Starck Real Estate
Investment Insights
Based on property information with market context.
This freestanding grocery and convenience store includes an existing inventory of groceries and sundries, an owned ATM, lottery ticket sales, and a hard liquor license. Cold-storage equipment consists of a 7-foot freezer, a 24-foot walk-in cooler, and six additional coolers. The property is zoned RTAIL.
A fenced side yard provides parking for up to 12 cars, with additional room for a drive-through configuration. The property is located at 725 W Chicago Street in Elgin, near a train station and I-90. The existing setup combines retail merchandise, regulated product offerings, and substantial refrigeration equipment in one neighborhood-oriented store.
A fenced side yard provides parking for up to 12 cars, with additional room for a drive-through configuration. The property is located at 725 W Chicago Street in Elgin, near a train station and I-90. The existing setup combines retail merchandise, regulated product offerings, and substantial refrigeration equipment in one neighborhood-oriented store.
Key Highlights
- Existing grocery and sundries inventory included
- Owned ATM, lottery sales, and hard liquor license
- Includes a 7‑foot freezer and 24‑foot walk‑in cooler
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
$21,695
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
4.82%
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%
$433,900
$433.9K
Cap Rate 7%
$309,929
$309.9K
Cap Rate 9%
$241,056
$241.1K
Market Conditions
NOI Build-Up for 1,296 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
$31.1K $24.00/SF
− Vacancy
−$2.2K −$1.68/SF
EGI
$28.9K $22.32/SF
− OpEx
−$7.2K −$5.58/SF
NOI
$21.7K $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%
$433,900
Cap Rate 7%
$309,929
Cap Rate 9%
$241,056
Alternative Uses
Best Use
Specialty Retail
$309.9K
$271.2K – $361.6K
NOI $21,695 @ 7.0% cap · market cap 4.82%
Second Best
Retail
$257.0K
$224.9K – $299.8K
NOI $17,989 @ 7.0% cap · market cap 4.00%
Theoretical Best
Office A
$447.4K
$391.5K – $522.0K
NOI $31,321 @ 7.0% cap · market cap 6.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
588
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60123, IL
47,932
Population
18,129
Households
2.6
Avg Household Size
37
Median Age
24%
College-Educated
84%
High-School Grad
14.0 sq mi
ZIP Area
3,424
Density / Sq Mi
$86,762
Median Household Income
$40,288
Median Earnings
$1,226
Median Rent
$242,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- La Casita Supermarket Inc. — 452 N Grove Ave, Elgin, IL 60120
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Inventory, licensed offerings, and dedicated cold-storage equipment are included.
Where is this grocery and convenience store located?
The property is located at 725 W Chicago Street Elgin, IL.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: Existing grocery and sundries inventory included; Owned ATM, lottery sales, and hard liquor license; Includes a 7‑foot freezer and 24‑foot walk‑in cooler
