NNN Industrial Property with
For Sale
Contact for pricing
735 Tollgate Rd, Elgin, IL 60123
The entire facility is leased to Staples under a 10-year NNN extension with annual increases.
Property Size28,197 SF
Price / SF$188.83
Days on Market200
Property Features for 735 Tollgate Rd
General Information
Standard status
Active
Size
28,197 SF
Property subtype
Office, Industrial
Zoning
GI
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Net Lease
Net Operating Income
$727,213
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1989
Year Renovated
2026
Buildings
2
Stories
1
Units
16
Tenancy
Multi
Listing Agency:
360 Real Estate Services, LLC
Listed By:
NICHOLAS KYRIAZES · License #471021614
Source:
Crexi
Added: Feb 13
Changed: Aug 31
Last Checked: Aug 31 at 1:40AM
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 360 Real Estate Services, LLC
Investment Insights
Based on property information with market context.
This 28,197-square-foot industrial facility, built in 1989, is occupied in its entirety by Staples following an expansion of the tenant’s footprint. The building is being adapted for print-shop operations through upgraded electrical infrastructure, new LED lighting, and interior reconfiguration. Ownership is also adding an exterior dock as part of the expansion work.
The property is positioned on Tollgate Road less than a quarter mile from the I-90/Route 31 interchange, providing east-west access to the expressway. The lease extension runs for 10 years upon occupancy of the expansion premises, scheduled for late 2nd Quarter/Early 3rd Quarter of 2026, and includes 3% annual increases. The property carries GI zoning and offers a long-term NNN occupancy structure.
The property is positioned on Tollgate Road less than a quarter mile from the I-90/Route 31 interchange, providing east-west access to the expressway. The lease extension runs for 10 years upon occupancy of the expansion premises, scheduled for late 2nd Quarter/Early 3rd Quarter of 2026, and includes 3% annual increases. The property carries GI zoning and offers a long-term NNN occupancy structure.
Key Highlights
- Entire 28,197‑square‑foot facility occupied by Staples
- 10‑year NNN lease extension begins upon expansion‑premises occupancy
- 3% annual lease increases
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
$296,914
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
5.58%
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%
$5,938,280
$5.9M
Cap Rate 7%
$4,241,629
$4.2M
Cap Rate 9%
$3,299,044
$3.3M
Market Conditions
NOI Build-Up for 28,197 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
$507.5K $18.00/SF
− Vacancy
−$50.8K −$1.80/SF
EGI
$456.8K $16.20/SF
− OpEx
−$159.9K −$5.67/SF
NOI
$296.9K $10.53/SF
Area
Cook County, IL
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
35.00%
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%
$5,938,280
Cap Rate 7%
$4,241,629
Cap Rate 9%
$3,299,044
Alternative Uses
Best Use
Flex RnD
$4.24M
$3.71M – $4.95M
NOI $296,914 @ 7.0% cap · market cap 5.58%
Second Best
Industrial
$1.73M
$1.52M – $2.02M
NOI $121,379 @ 7.0% cap · market cap 2.28%
Theoretical Best
Office A
$9.74M
$8.52M – $11.36M
NOI $681,460 @ 7.0% cap · market cap 12.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
475
Businesses Nearby
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 Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
NNN property - The entire facility is leased to Staples under a 10-year NNN extension with annual increases.
Where is this nnn property located?
The property is located at 735 Tollgate Rd Elgin, IL.
What is the asking price?
The asking price for this property is $5,324,533.
What are key features of this property?
This property features: Entire 28,197‑square‑foot facility occupied by Staples; 10‑year NNN lease extension begins upon expansion‑premises occupancy; 3% annual lease increases
