Listing Agency: Gallery Homes m***@gmail.com Show Phone

Listed By: Mary Davis · License #475.159029

Source: Crexi

Added: Mar 16, 2024 Changed: Aug 8 Last Checked: Aug 8 at 11:26AM

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Investment Insights

Based on property information with market context.

This 830-square-foot restaurant, located on the main thoroughfare of Spring Bay, Illinois, presents an opportunity to own a business specializing in pizza and ice cream. The property benefits from excellent visibility and a high traffic count. The building includes a dining room/gift shop, a waitress station/checkout area, and a full kitchen equipped with a pizza oven and ice cream equipment. An accessory shed is also included. Outdoor seating areas are available in the front under a tree and to the side/rear of the building. Original windows for walk-up orders are present and could be made serviceable.

Key Highlights

• Turnkey pizza and ice cream restaurant
• Excellent visibility and high traffic location on the main thoroughfare
• Includes full kitchen with pizza oven and ice cream equipment

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

$8,684

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

6.69%

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%

$173,680 $173.7K

Cap Rate 7%

$124,057 $124.1K

Cap Rate 9%

$96,489 $96.5K

Market Conditions

NOI Build-Up for 830 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

$12.5K $15.00/SF

− Vacancy

−$872 −$1.05/SF

EGI

$11.6K $13.95/SF

− OpEx

−$2.9K −$3.49/SF

NOI

$8.7K $10.46/SF

Area

Tazewell County, IL

Vacancy

7.00%

Lease Rate

$15.00 /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%

$173,680

Cap Rate 7%

$124,057

Cap Rate 9%

$96,489

Alternative Uses

Best Use

Specialty Retail

$124.1K

$108.6K – $144.7K (±1% cap)

NOI $8,684 @ 7.0% cap · market cap 6.69%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$324.8K

$284.2K – $378.9K (±1% cap)

NOI $22,735 @ 7.0% cap · market cap 17.50%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Restaurant Real Estate Agency Dental Office Pharmacy Storage Facility HVAC Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

256

Businesses Nearby

1k

Monthly Visits Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Enterprise Rent-A-Car Shops & Services

1,489 visits/mo 0.4 miles

Demographics for 61611, IL

23,837

Population

11,207

Households

2.1

Avg Household Size

44

Median Age

26%

College-Educated

93%

High-School Grad

41.0 sq mi

ZIP Area

581

Density / Sq Mi

$76,329

Median Household Income

$44,586

Median Earnings

$942

Median Rent

$162,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Turnkey pizza and ice cream restaurant with high visibility.

Where is this conventional restaurant located?

The property is located at 1606 TREMONT Street Spring Bay, IL.

What is the asking price?

The asking price for this property is $129,900.

What are key features of this property?

This property features: Turnkey pizza and ice cream restaurant; Excellent visibility and high traffic location on the main thoroughfare; Includes full kitchen with pizza oven and ice cream equipment