Building Details

Building Size 2,962 SF

Year Built 1967

Buildings 2

Listing Agency: Tarrant and Harman Real Estate and Auction Co t***@tarrantandharman.com Show Phone

Listed By: Craig Hyden · License #475.196999 Show Phone

Source: Exit2newbeginningz

Added: Apr 25 Changed: Aug 29 Last Checked: Aug 29 at 2:17PM

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Investment Insights

Based on property information with market context.

This conventional restaurant property includes two separate buildings. The main restaurant offers nearly 3,000 square feet of dining and bar space, a full kitchen, and outdoor seating overlooking a neighboring lake. A lower-level banquet room adds event space within the restaurant layout.

The property covers over 2 acres and includes parking area. A separate approximately 1,000 square foot office building is included, along with the restaurant’s equipment and inventory. Located at 9180 State Route 140 in Hamel, Illinois, the property has interstate frontage and an average daily traffic count of 31,500. The site is near a truck stop and travel center and is described as having exposure to two heavily traveled highways.

Key Highlights

• Nearly 3,000 square feet of main‑level dining and bar space
• Full kitchen, restaurant equipment, and inventory included
• Lower‑level banquet room for events and private parties

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

$35,129

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

7.49%

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%

$702,580 $702.6K

Cap Rate 7%

$501,843 $501.8K

Cap Rate 9%

$390,322 $390.3K

Market Conditions

NOI Build-Up for 2,962 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

$50.5K $17.04/SF

− Vacancy

−$3.6K −$1.23/SF

EGI

$46.8K $15.81/SF

− OpEx

−$11.7K −$3.95/SF

NOI

$35.1K $11.86/SF

Area

Madison County, IL

Vacancy

7.20%

Lease Rate

$17.04 /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%

$702,580

Cap Rate 7%

$501,843

Cap Rate 9%

$390,322

Alternative Uses

Best Use

Specialty Retail

$501.8K

$439.1K – $585.5K (±1% cap)

NOI $35,129 @ 7.0% cap · market cap 7.49%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$807.4K

$706.4K – $941.9K (±1% cap)

NOI $56,515 @ 7.0% cap · market cap 12.05%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Auto Repair Shop

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

Lease Details

31,500 VPD

Traffic count

Turnkey business

Opportunity

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

5

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 62046, IL

913

Population

374

Households

2.4

Avg Household Size

38

Median Age

39%

College-Educated

96%

High-School Grad

1.1 sq mi

ZIP Area

830

Density / Sq Mi

$96,750

Median Household Income

$59,777

Median Earnings

$940

Median Rent

$229,600

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 - Restaurant property includes a full kitchen, banquet room, outdoor seating, and a separate office building.

Where is this conventional restaurant located?

The property is located at 9180 State Route 140 Hamel, IL.

What is the asking price?

The asking price for this property is $469,000.

What are key features of this property?

This property features: Nearly 3,000 square feet of main‑level dining and bar space; Full kitchen, restaurant equipment, and inventory included; Lower‑level banquet room for events and private parties