53-Room Red Roof Inn
For Sale
$3,779,000
9424 Waukegan Road, Morton Grove, IL 60053
Two-level lodging property near major roads, interstates, O’Hare International Airport, and Chicago attractions.
Property Size16,740 SF
Days on Market33
Property Features for 9424 Waukegan Road
General Information
Standard status
Active
Size
16,740 SF
Property subtype
Business Opportunity
Zoning
COMMR
Taxes and HOA fees
Annual Taxes
$76,614
Building Details
Building Size
16,740 SF
Stories
2
Listing Agency:
Century 21 Circle
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(773) 465-4200
Source:
Perillorealestategroup
Added: Jul 28
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 Century 21 Circle
Investment Insights
Based on property information with market context.
This two-level hotel contains 53 rooms and operates under the Red Roof Inn name. The property offers guest accommodations with a range of amenities and is positioned to serve travelers visiting the Morton Grove area or passing through O’Hare International Airport.
The hotel is located on Waukegan Road in Morton Grove, with access to major roads and interstates. O’Hare International Airport and downtown Chicago are within a short distance, while area attractions include Navy Pier, museums, theaters, Six Flags Great America, and Golf Mill shopping center.
The hotel is located on Waukegan Road in Morton Grove, with access to major roads and interstates. O’Hare International Airport and downtown Chicago are within a short distance, while area attractions include Navy Pier, museums, theaters, Six Flags Great America, and Golf Mill shopping center.
Key Highlights
- 53‑room hotel in a two‑level building
- Red Roof Inn property on Waukegan Road in Morton Grove
- Near major roads and interstates
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
$125,236
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
3.31%
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%
$2,504,720
$2.5M
Cap Rate 7%
$1,789,086
$1.8M
Cap Rate 9%
$1,391,511
$1.4M
Market Conditions
NOI Build-Up for 16,740 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
$301.3K $18.00/SF
− Vacancy
−$37.7K −$2.25/SF
EGI
$263.7K $15.75/SF
− OpEx
−$138.4K −$8.27/SF
NOI
$125.2K $7.48/SF
Area
Cook County, IL
Vacancy
12.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$2,504,720
Cap Rate 7%
$1,789,086
Cap Rate 9%
$1,391,511
Alternative Uses
Best Use
Hotel Hospitality
$1.79M
$1.57M – $2.09M
NOI $125,236 @ 7.0% cap · market cap 3.31%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.78M
$5.06M – $6.74M
NOI $404,569 @ 7.0% cap · market cap 10.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
791
Businesses Nearby
Explore this area
Business Placement
Demographics for 60053, IL
25,297
Population
9,546
Households
2.7
Avg Household Size
45
Median Age
52%
College-Educated
90%
High-School Grad
5.1 sq mi
ZIP Area
4,960
Density / Sq Mi
$106,078
Median Household Income
$61,315
Median Earnings
$2,210
Median Rent
$377,000
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hotel - Two-level lodging property near major roads, interstates, O’Hare International Airport, and Chicago attractions.
Where is this hotel located?
The property is located at 9424 Waukegan Road Morton Grove, IL.
What is the asking price?
The asking price for this property is $3,779,000.
What are key features of this property?
This property features: 53‑room hotel in a two‑level building; Red Roof Inn property on Waukegan Road in Morton Grove; Near major roads and interstates
