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501 S Lincoln Avenue, Dixon, IL 61021.
This 39,727-square-foot former school on 5.08 acres presents a compelling investment opportunity with stable in-place income and strong long-term potential. The property is anchored by a well-established private therapeutic day school occupying the entire second floor, providing reliable cash flow from a tenant with consistent demand for its services. Built in 1937, the structure is all brick and remains in solid overall condition, offering durable construction and reduced long-term capital expenditure exposure. The building's infrastructure is well suited for institutional use or adaptive reuse, featuring an 800-amp electrical service, a steam heat boiler system, and window air-conditioning units in most classrooms. A full gymnasium with a stage enhances functionality, while the full basement adds meaningful versatility with a cafeteria, abundant storage, a dedicated boiler room, and egress windows in most basement classrooms, supporting compliant educational or programmatic use. The property also includes a fenced playground, expansive grounds suitable for outdoor activities or expansion, and a detached two-car garage offering additional storage or operational support space. A flat rubber roof was recoated in 2021 and carries a ten-year warranty, reducing near-term maintenance requirements for an investor. With its combination of stable tenancy, strong physical fundamentals, and sizable acreage, this property offers multiple avenues for future value creation-whether through continued educational use, re-tenanting strategies, expanded programming, or broader redevelopment.
MLS ID: 12520381
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501 S Lincoln Avenue, Dixon, IL 61021.

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| Loan Type | 30 Year Fixed | FHA 30 Year Fixed | 15 Year Fixed |
| Purchase Price | $450,000 | $450,000 | $450,000 |
| Down Payment | $90,000 | $15,750 | $112,500 |
| Monthly Mortgage Amount | $2,101 | $2,579 | $2,691 |
| Taxes | $626 | $626 | $626 |
| Insurance | $100 | $100 | $100 |
| HOA/Dues/Fees | $0 | $0 | $0 |
| Monthly Mortage Insurance | $0 | $198 | $0 |
| Monthly Estimated Total | $2,858 | $3,534 | $3,448 |
Dixon, IL is a historic city along the Rock River that blends small-town charm with a vibrant community spirit. The city offers a strong mix of cultural, recreational, and educational opportunities. Residents enjoy a variety of local shops, restaurants, and events, as well as outdoor activities such as boating, fishing, and biking along scenic riverfront trails. Its historic downtown, paired with modern conveniences, creates a balanced environment that appeals to both families and professionals.
Once home to Ronald Reagan as a child, Dixon has kept its history alive with celebrations and preservation. Situated along two banks of the Rock River, this historic and charming little community filled with classic brick structures lining its downtown district offers residents a quiet place to settle without sacrificing great dining and shopping.
Art lovers relish in the local galleries, community art fairs and year-round performances at the art center. A particular favorite is the Gardentstock Arts & Music Fest where local artists feature their work, and local musicians entertain throughout the day and night. This little community is well known for its festivals, bringing in visitors from surrounding communities as far as two hours away. Fourth of July fireworks wow the residents, the Petunia Festival spreads beauty throughout the downtown streets, and the fall Scarecrow Festival delights all.
The real estate market in Dixon is diverse and inviting. Buyers will find an array of housing options ranging from classic single-family homes on tree-lined streets to newer construction with updated layouts and amenities. Historic properties, some with unique architectural character, are also available and reflect the city’s long-established roots. For those seeking more space, country homes and properties with acreage can be found just outside the city, offering privacy while keeping local amenities close at hand.
Affordability is a major advantage in the local housing market, making it an appealing choice for first-time homebuyers, retirees, and investors. The community’s steady growth, along with its convenient location within Northern Illinois, ensures that housing retains long-term value. With its strong sense of community, accessible lifestyle, and variety of real estate options, Dixon offers an excellent balance of small-town living and opportunity, making it a desirable place to call home.
If you are ready to start your home buying or selling journey, browse the latest real estate listings in Dixon, IL. You can also contact us—we are here to help!