Leased Live/Work and Apartments
For Sale
$3,500,000
2500 W Chicago Ave, Chicago, IL 60622
Fully leased live/work plus two second-floor apartments with modern amenities for stable investment.
Property Size17,000 SF
Price / SF$700
Days on Market70
Property Features for 2500 W Chicago Ave
General Information
Standard status
Active
Size
17,000 SF
Property subtype
Retail
Occupancy
100%
Additional Details
Cap Rate
7.2%
Multifamily Units
2
Building Details
Building Size
17,000 SF
Year Built
1940
Year Renovated
2017
Listing Agency:
Friedman Real Estate IL LLC
(847) 682-5024
Listed By:
Kellen Duggan · License #475155060
(847) 682-5024
Source:
Friedmanrealestate
Added: Jun 2
Changed: Aug 8
Last Checked: Aug 9 at 5:03AM
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 Friedman Real Estate IL LLC
Investment Insights
Based on property information with market context.
Rarely available, this 100% leased live/work and apartment building presents an investment opportunity in Chicago’s Ukrainian Village/Wicker Park area. The property features an impressive 5,000 SF bow-truss style space and includes two large second-floor apartments, supported by top-of-the-line amenities. Offered for sale with leases and rent roll available, it’s structured for investors seeking steadiness alongside functional flexibility.
Positioned in one of the fastest-growing neighborhoods for young professionals, the building benefits from its live/work configuration and the ability to serve both owner-users and tenants. Current offerings are tied to established operations, and buyers must sign an NDA to review financial documents.
For prospective buyers, the combination of a substantial ground-floor live/work footprint and two second-floor apartment units can broaden income streams while supporting a hands-on ownership strategy. Owner-users may find the layout well-suited for combining business use with residential living, while investors can underwrite based on the property’s fully leased status and provided lease documentation.
Positioned in one of the fastest-growing neighborhoods for young professionals, the building benefits from its live/work configuration and the ability to serve both owner-users and tenants. Current offerings are tied to established operations, and buyers must sign an NDA to review financial documents.
For prospective buyers, the combination of a substantial ground-floor live/work footprint and two second-floor apartment units can broaden income streams while supporting a hands-on ownership strategy. Owner-users may find the layout well-suited for combining business use with residential living, while investors can underwrite based on the property’s fully leased status and provided lease documentation.
Key Highlights
- 100% leased live/work property plus two second‑floor apartments
- 7.2% cap rate investment opportunity (per provided listing remarks)
- 5,000 SF bow‑truss style live/work space
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
$107,280
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
3.07%
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%
$2,145,600
$2.1M
Cap Rate 7%
$1,532,571
$1.5M
Cap Rate 9%
$1,192,000
$1.2M
Market Conditions
NOI Build-Up for 5,000 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
$192.0K $38.40/SF
− Vacancy
−$49.0K −$9.79/SF
EGI
$143.0K $28.61/SF
− OpEx
−$35.8K −$7.15/SF
NOI
$107.3K $21.46/SF
Area
Chicago, IL
Vacancy
25.50%
Lease Rate
$38.40 /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%
$2,145,600
Cap Rate 7%
$1,532,571
Cap Rate 9%
$1,192,000
Alternative Uses
Best Use
Office B
$1.53M
$1.34M – $1.79M
NOI $107,280 @ 7.0% cap · market cap 3.07%
Second Best
Mixed Use
$1.21M
$1.05M – $1.41M
NOI $84,375 @ 7.0% cap · market cap 2.41%
Theoretical Best
Office A
$2.36M
$2.06M – $2.75M
NOI $165,024 @ 7.0% cap · market cap 4.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
3,548
Businesses Nearby
Explore this area
Business Placement
Demographics for 60622, IL
55,075
Population
27,630
Households
2
Avg Household Size
33
Median Age
73%
College-Educated
94%
High-School Grad
2.5 sq mi
ZIP Area
22,030
Density / Sq Mi
$124,852
Median Household Income
$76,180
Median Earnings
$1,932
Median Rent
$622,900
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Live-work space - Fully leased live/work plus two second-floor apartments with modern amenities for stable investment.
Where is this live-work space located?
The property is located at 2500 W Chicago Ave Chicago, IL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 100% leased live/work property plus two second‑floor apartments; 7.2% cap rate investment opportunity (per provided listing remarks); 5,000 SF bow‑truss style live/work space
