Goose Island Flex-Industrial
For Sale
Contact for pricing
1040 N Halsted St, Chicago, IL 60642
Flex-industrial property in Chicago's Goose Island with strong tenant base.
Property Size27,599 SF
Price / SF$240.41
Days on Market193
Property Features for 1040 N Halsted St
General Information
Standard status
Active
Size
27,599 SF
Property subtype
Industrial
Zoning
PMD 3
Building Details
Year Built
1956
Listing Agency:
Greenstone Partners
Listed By:
Jason St. John · License #IL 475142612
Source:
Crexi
Added: Feb 9
Changed: Aug 14
Last Checked: Aug 14 at 7:24AM
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 Greenstone Partners
Investment Insights
Based on property information with market context.
This flex-industrial property is positioned in Goose Island, offering connectivity to Chicago’s dynamic neighborhoods. The location provides access to River North, River West, Lincoln Park, Wicker Park, Fulton Market, Bucktown, and West Town. The property is located near Onni Group’s Halsted Pointe development and Bally’s Chicago Casino. The Salt Shed, a mixed-use venue, is also nearby. Infrastructure improvements are underway, including the reconstruction of the Chicago Avenue Bridge. The property features hundreds of free street parking spaces and is within one mile of three major CTA stations. Two CTA bus lines offer north-south and east-west connections. Interstate 90/Kennedy is located 0.9 miles away. The property has a tenant base consisting of Hogsalt Hospitality, Greenstone Partners, and Dog. Hotel | Daycare, with an average lease tenure of 8.17 years. The property features seven dock doors and clear heights of 12’ to the beam and 14’ to the deck. Suite sizes range from 6,500 to 11,500 square feet. The property is positioned along Halsted Street with dock access via Haines and Hooker Streets. The property is suitable for e-commerce, logistics, and service-oriented tenants. The property has 27599 square feet of space.
Key Highlights
- Irreplaceable last‑mile flex‑industrial facility in a centralized location with unmatched connectivity to Chicago's most dynamic neighborhoods.
- Significant mark‑to‑market upside potential with Dog. Hotel | Daycare lease expiring 5/31/2029 and paying significantly below market rent.
- Located in the heart of Goose Island's revitalization, near major developments, driving future demand.
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
$318,603
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
4.80%
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%
$6,372,060
$6.4M
Cap Rate 7%
$4,551,471
$4.6M
Cap Rate 9%
$3,540,033
$3.5M
Market Conditions
NOI Build-Up for 27,599 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
$529.9K $19.20/SF
− Vacancy
−$39.7K −$1.44/SF
EGI
$490.2K $17.76/SF
− OpEx
−$171.6K −$6.22/SF
NOI
$318.6K $11.54/SF
Area
Chicago, IL
Vacancy
7.50%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$6,372,060
Cap Rate 7%
$4,551,471
Cap Rate 9%
$3,540,033
Alternative Uses
Best Use
Flex RnD
$4.55M
$3.98M – $5.31M
NOI $318,603 @ 7.0% cap · market cap 4.80%
Second Best
Industrial
$2.47M
$2.16M – $2.88M
NOI $173,072 @ 7.0% cap · market cap 2.61%
Theoretical Best
Office A
$13.01M
$11.39M – $15.18M
NOI $910,899 @ 7.0% cap · market cap 13.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,901
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60642, IL
21,687
Population
12,144
Households
1.8
Avg Household Size
33
Median Age
78%
College-Educated
97%
High-School Grad
1.7 sq mi
ZIP Area
12,757
Density / Sq Mi
$141,179
Median Household Income
$90,885
Median Earnings
$2,216
Median Rent
$604,200
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Bumbu Roux — 833 W Haines St, Chicago, IL 60642
- CMM Catering — Chicago, IL 60642
- Elite Personal Chefs — 859 W Erie St UNIT 806, Chicago, IL 60642
- Zullo's Corporate Catering — 1103 w grand ave, chicago, il 60642
- Katie O's Food Carnival — 820 N Orleans St, Chicago, IL 60610
Frequently Asked Questions
What type of property is this?
Flex space - Flex-industrial property in Chicago's Goose Island with strong tenant base.
Where is this flex space located?
The property is located at 1040 N Halsted St Chicago, IL.
What is the asking price?
The asking price for this property is $6,635,000.
What are key features of this property?
This property features: Irreplaceable last‑mile flex‑industrial facility in a centralized location with unmatched connectivity to Chicago's most dynamic neighborhoods.; Significant mark‑to‑market upside potential with Dog. Hotel | Daycare lease expiring 5/31/2029 and paying significantly below market rent.; Located in the heart of Goose Island's revitalization, near major developments, driving future demand.
