Auto Shop on Busy
For Sale
Contact for pricing
239 W 162nd St, South Holland, IL 60473
Auto shop with 8 bays in South Holland auto corridor.
Property Size6,500 SF
Price / SF$92.31
Days on Market802
Property Features for 239 W 162nd St
General Information
Standard status
Active
Size
6,500 SF
Class
C
Property subtype
Retail
Zoning
General Business - Commercial
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$45,000
Building Details
Year Built
1989
Year Renovated
2014
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Lagestee-Mulder Inc
(708) 333-8338
Listed By:
Martha Winter · License #471002749
Source:
Crexi
Added: Jun 10, 2024
Changed: Aug 11
Last Checked: Aug 19 at 6:45AM
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 Lagestee-Mulder Inc
Investment Insights
Based on property information with market context.
This is an auto shop building with 8 bays. The property is located in the center of the South Holland auto corridor on busy Hwy 6, which has a traffic volume of 23,500 vehicles per day. The property is subject to an absolute NNN lease with zero landlord expenses. The initial lease term is 7 years, with two 5-year options. The lease includes a 2% annual escalation.
Key Highlights
- Absolute NNN Lease: Enjoy a completely passive investment with zero landlord expenses.
- 7‑Year Initial Term: Benefit from a stable, long‑term income stream, plus two 5‑year renewal options.
- Annual Escalation: Healthy 2% annual rent increases protect against inflation and increase your ROI.
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
$27,980
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
4.66%
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%
$559,600
$559.6K
Cap Rate 7%
$399,714
$399.7K
Cap Rate 9%
$310,889
$310.9K
Market Conditions
NOI Build-Up for 6,500 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
$42.1K $6.48/SF
− Vacancy
−$2.1K −$0.33/SF
EGI
$40.0K $6.15/SF
− OpEx
−$12.0K −$1.84/SF
NOI
$28.0K $4.30/SF
Area
Cook County, IL
Vacancy
5.10%
Lease Rate
$6.48 /SF/Yr
Expense Ratio
30.00%
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%
$559,600
Cap Rate 7%
$399,714
Cap Rate 9%
$310,889
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.50M
NOI $90,221 @ 7.0% cap · market cap 15.04%
Second Best
Industrial
$399.7K
$349.8K – $466.3K
NOI $27,980 @ 7.0% cap · market cap 4.66%
Theoretical Best
Office A
$2.24M
$1.96M – $2.62M
NOI $157,091 @ 7.0% cap · market cap 26.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
603
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60473, IL
21,661
Population
7,969
Households
2.7
Avg Household Size
43
Median Age
27%
College-Educated
92%
High-School Grad
7.8 sq mi
ZIP Area
2,777
Density / Sq Mi
$88,046
Median Household Income
$40,903
Median Earnings
$1,914
Median Rent
$200,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Auto shop with 8 bays in South Holland auto corridor.
Where is this auto shop located?
The property is located at 239 W 162nd St South Holland, IL.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Absolute NNN Lease: Enjoy a completely passive investment with zero landlord expenses.; 7‑Year Initial Term: Benefit from a stable, long‑term income stream, plus two 5‑year renewal options.; Annual Escalation: Healthy 2% annual rent increases protect against inflation and increase your ROI.
