Bronzeville Retail Investment
For Sale
$899,000
118 E 51st Street, Chicago, IL 60615
Six-unit retail building in high-growth area near Obama Center.
Property Size3,500 SF
Price / SF$256.86
Days on Market161
Property Features for 118 E 51st Street
General Information
Standard status
Active
Size
3,500 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$42,542
Amenities
Central air
Central Air Cooling
Building Details
Year Built
1898
Listing Agency:
REALTY OF AMERICA, LLC
(708) 788-1900
Listed By:
PERDURE CARTER · License #471009363
Source:
Corcoran
Added: Mar 13
Changed: Aug 19
Last Checked: Aug 20 at 5:32AM
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 REALTY OF AMERICA, LLC
Investment Insights
Based on property information with market context.
This is a six-unit retail building located in the Bronzeville/Washington Park area. Units range from 1,100 to 3,500 square feet, offering flexible layouts suitable for various commercial uses. The property features two occupied units: a liquor store mart and a nail salon, providing immediate rental income. The corner restaurant unit was renovated three years ago. The restaurant, a single storefront, and a larger double unit are currently vacant, offering potential for owner-users or investors looking to increase cash flow. Situated in a high foot traffic area, the property benefits from strong neighborhood activity, street parking, and close proximity to public transportation. Surrounded by ongoing new developments and located just minutes from the anticipated Obama Presidential Center, this location is positioned for continued growth and long-term appreciation on the South Side.
Key Highlights
- Prime commercial investment opportunity in the rapidly growing Bronzeville/Washington Park area.
- 6‑unit retail building with flexible layouts (1,100‑3,500 sq ft) suitable for diverse commercial uses.
- Immediate rental income from 2 occupied units (liquor store mart and nail salon).
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
$48,422
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
5.39%
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%
$968,440
$968.4K
Cap Rate 7%
$691,743
$691.7K
Cap Rate 9%
$538,022
$538.0K
Market Conditions
NOI Build-Up for 3,500 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
$75.6K $21.60/SF
− Vacancy
−$6.4K −$1.84/SF
EGI
$69.2K $19.76/SF
− OpEx
−$20.8K −$5.93/SF
NOI
$48.4K $13.83/SF
Area
Chicago, IL
Vacancy
8.50%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$968,440
Cap Rate 7%
$691,743
Cap Rate 9%
$538,022
Alternative Uses
Best Use
Retail
$691.7K
$605.3K – $807.0K
NOI $48,422 @ 7.0% cap · market cap 5.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.65M
$1.44M – $1.93M
NOI $115,517 @ 7.0% cap · market cap 12.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,417
Businesses Nearby
34k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 77%
Shops & Services 23%
McDonald's
Dining
26,074 visits/mo
0.5 miles
Citgo
Shops & Services
7,883 visits/mo
0.1 miles
Demographics for 60615, IL
43,502
Population
24,997
Households
1.7
Avg Household Size
35
Median Age
61%
College-Educated
93%
High-School Grad
2.2 sq mi
ZIP Area
19,774
Density / Sq Mi
$62,105
Median Household Income
$47,186
Median Earnings
$1,444
Median Rent
$305,200
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Six-unit retail building in high-growth area near Obama Center.
Where is this retail space located?
The property is located at 118 E 51st Street Chicago, IL.
What is the asking price?
The asking price for this property is $899,000.
What are key features of this property?
This property features: Prime commercial investment opportunity in the rapidly growing Bronzeville/Washington Park area.; 6‑unit retail building with flexible layouts (1,100‑3,500 sq ft) suitable for diverse commercial uses.; Immediate rental income from 2 occupied units (liquor store mart and nail salon).
