Mixed-Use Five-Unit
For Sale
$3,125,000
1104 W Madison St, Chicago, IL 60607
Gut-renovated five-unit mixed-use property with one commercial space and four residential units, including in-unit laundry.
Property Size8,979 SF
Days on Market103
Property Features for 1104 W Madison St
General Information
Standard status
Active
Size
8,979 SF
Property subtype
Multifamily
Additional Details
Cap Rate
6.25%
Multifamily Units
5
Building Details
Building Size
8,979 SF
Year Built
1869
Year Renovated
2016
Listed By:
Noah Birk · License #IL #475125864
(630) 209-3622
Source:
Kisergroup
Added: May 27
Changed: Aug 31
Last Checked: Sep 5 at 5:19AM
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 Noah Birk
Investment Insights
Based on property information with market context.
1104 W. Madison is a gut-renovated five-unit mixed-use building featuring condo-quality finishes throughout. The unit mix includes one 3Bd/2Ba, three 2Bd/2Ba residential units, and one commercial space. Residential interiors offer open-concept layouts with modern kitchens, granite countertops, and stainless steel appliances. Each unit has its own furnace and hot water tank, along with in-unit laundry.
The property is positioned along Madison Street in Chicago’s West Loop area, with access to the CTA Blue Line nearby. Fulton Market is also described as being within a short walk.
The building was renovated in 2016 and is being offered for sale with an in-place cap rate of 6.25% and stated net operating income of $195,000.
The property is positioned along Madison Street in Chicago’s West Loop area, with access to the CTA Blue Line nearby. Fulton Market is also described as being within a short walk.
The building was renovated in 2016 and is being offered for sale with an in-place cap rate of 6.25% and stated net operating income of $195,000.
Key Highlights
- Gut‑renovated 5‑unit mixed‑use building (built 1869) with 1 commercial space and 4 residential units
- Unit mix: 1 x 3BD/2BA, 3 x 2BD/2BA, plus commercial space
- Renovated in 2016 with condo‑quality finishes and open‑concept residential layouts
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
$137,641
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
4.40%
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%
$2,752,820
$2.8M
Cap Rate 7%
$1,966,300
$2.0M
Cap Rate 9%
$1,529,344
$1.5M
Market Conditions
NOI Build-Up for 8,979 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
$264.0K $29.40/SF
− Vacancy
−$13.7K −$1.53/SF
EGI
$250.3K $27.87/SF
− OpEx
−$112.6K −$12.54/SF
NOI
$137.6K $15.33/SF
Area
Chicago, IL
Vacancy
5.20%
Lease Rate
$29.40 /SF/Yr
Expense Ratio
45.00%
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%
$2,752,820
Cap Rate 7%
$1,966,300
Cap Rate 9%
$1,529,344
Alternative Uses
Best Use
Apartment 5plus
$1.97M
$1.72M – $2.29M
NOI $137,641 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.23M
$3.70M – $4.94M
NOI $296,350 @ 7.0% cap · market cap 9.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
7,089
Businesses Nearby
Explore this area
Business Placement
Demographics for 60607, IL
31,816
Population
16,540
Households
1.9
Avg Household Size
31
Median Age
81%
College-Educated
97%
High-School Grad
2.3 sq mi
ZIP Area
13,833
Density / Sq Mi
$126,307
Median Household Income
$79,870
Median Earnings
$2,333
Median Rent
$494,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Gut-renovated five-unit mixed-use property with one commercial space and four residential units, including in-unit laundry.
Where is this apartment building located?
The property is located at 1104 W Madison St Chicago, IL.
What is the asking price?
The asking price for this property is $3,125,000.
What are key features of this property?
This property features: Gut‑renovated 5‑unit mixed‑use building (built 1869) with 1 commercial space and 4 residential units; Unit mix: 1 x 3BD/2BA, 3 x 2BD/2BA, plus commercial space; Renovated in 2016 with condo‑quality finishes and open‑concept residential layouts
