Dual-Tenant NNN
For Sale
Contact for pricing
948 Dundee Rd, Palatine, IL 60074
Two nationally recognized restaurant concepts operate under separate NNN leases in a recently built commercial property.
Property Size4,336 SF
Lot Size0.51 Acres
Price / SF$533.37
Days on Market151
Property Features for 948 Dundee Rd
General Information
Standard status
Active
Size
4,336 SF
Lot size
0.51 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Net Operating Income
$150,324
Additional Details
Gross Income
$150,324
Building Details
Year Built
2021
Tenancy
Multi
Listing Agency:
SURMOUNT
(332) 345-4222
Listed By:
Anthony DAmbrosia · License #NY 10401294012
Source:
Crexi
Added: Apr 2
Changed: Aug 30
Last Checked: Aug 30 at 11:50AM
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 SURMOUNT
Investment Insights
Based on property information with market context.
This dual-tenant commercial property contains approximately 4,336 rentable square feet on an estimated 0.51-acre parcel. Completed in 2021, the building is occupied by IHOP and Teriyaki Madness under separate triple-net lease agreements.
IHOP has a 20-year NNN lease with 10% rent increases every five years. Teriyaki Madness is committed under a 10-year NNN lease with annual 3% rent escalations. The property is located at 948 Dundee Road in Palatine, Illinois.
IHOP has a 20-year NNN lease with 10% rent increases every five years. Teriyaki Madness is committed under a 10-year NNN lease with annual 3% rent escalations. The property is located at 948 Dundee Road in Palatine, Illinois.
Key Highlights
- Approximately 4,336 rentable square feet on an estimated 0.51‑acre parcel
- Built in 2021
- Leased to IHOP and Teriyaki Madness
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
$72,585
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
3.14%
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%
$1,451,700
$1.5M
Cap Rate 7%
$1,036,929
$1.0M
Cap Rate 9%
$806,500
$806.5K
Market Conditions
NOI Build-Up for 4,336 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
$104.1K $24.00/SF
− Vacancy
−$7.3K −$1.68/SF
EGI
$96.8K $22.32/SF
− OpEx
−$24.2K −$5.58/SF
NOI
$72.6K $16.74/SF
Area
Cook County, IL
Vacancy
7.00%
Lease Rate
$24.00 /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%
$1,451,700
Cap Rate 7%
$1,036,929
Cap Rate 9%
$806,500
Alternative Uses
Best Use
Specialty Retail
$1.04M
$907.3K – $1.21M
NOI $72,585 @ 7.0% cap · market cap 3.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.50M
$1.31M – $1.75M
NOI $104,792 @ 7.0% cap · market cap 4.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
936
Businesses Nearby
550k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 29%
Dining 28%
Shops & Services 25%
Home Improvements & Furnishings 8%
Walmart
Superstores
82,141 visits/mo
0.1 miles
Target
Superstores
76,065 visits/mo
0.4 miles
The Home Depot
Home Improvements & Furnishings
42,789 visits/mo
0.2 miles
McDonald's
Dining
36,188 visits/mo
0.1 miles
Aldi
Groceries
22,350 visits/mo
0.3 miles
Demographics for 60074, IL
37,705
Population
14,953
Households
2.5
Avg Household Size
38
Median Age
42%
College-Educated
85%
High-School Grad
7.1 sq mi
ZIP Area
5,311
Density / Sq Mi
$81,911
Median Household Income
$45,217
Median Earnings
$1,429
Median Rent
$307,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Two nationally recognized restaurant concepts operate under separate NNN leases in a recently built commercial property.
Where is this nnn property located?
The property is located at 948 Dundee Rd Palatine, IL.
What is the asking price?
The asking price for this property is $2,312,676.
What are key features of this property?
This property features: Approximately 4,336 rentable square feet on an estimated 0.51‑acre parcel; Built in 2021; Leased to IHOP and Teriyaki Madness
