South Loop Multifamily Apartment
For Sale
$9,000,000
1323 S Michigan Ave, Chicago, IL 60605
30-unit apartment building featuring a mix of 1-, 1.5-, and 2.5-bedroom residences.
Property Size34,926 SF
Days on Market145
Property Features for 1323 S Michigan Ave
General Information
Standard status
Active
Size
34,926 SF
Property subtype
Multifamily
Additional Details
Cap Rate
5.74%
Multifamily Units
30
Amenities
Prime South Loop Location
Attractive Unit Mix: One-Bedroom and Two-And A Half-Bedroom Layouts
Assumable Financing: $5,459,082 OLB, 3.90% IR, Matures 9/1/2031
Building Details
Building Size
34,926 SF
Units
30
Tenancy
Multi
Listing Agency:
Chicago Downtown Office
(312) 327-5455
Listed By:
Kyle A. Stengle · License #IL: 475.138461
(312) 327-5455
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 8
Last Checked: Jul 23 at 8:45AM
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 Chicago Downtown Office
Investment Insights
Based on property information with market context.
This 30-unit multifamily apartment building offers a diversified residential unit mix, including 13 one-bedroom units with one bathroom, five 1.5-bedroom units with one bathroom, six 1.5-bedroom units with two bathrooms, and six 2.5-bedroom units with two bathrooms. The property is positioned as an income-producing residential asset in a high-density urban setting.
Located at 1323 S Michigan Ave in Chicago’s South Loop neighborhood, the building benefits from established, transit-oriented demand. The area is described as walkable with a dense mix of residential towers and retail/lifestyle amenities. Residents have access to public transportation via nearby CTA Red, Green, and Orange Lines, as well as Metra and major bus routes.
The unit mix is designed to serve a range of household sizes, supporting consistent occupancy potential within the South Loop’s renter-focused environment.
Located at 1323 S Michigan Ave in Chicago’s South Loop neighborhood, the building benefits from established, transit-oriented demand. The area is described as walkable with a dense mix of residential towers and retail/lifestyle amenities. Residents have access to public transportation via nearby CTA Red, Green, and Orange Lines, as well as Metra and major bus routes.
The unit mix is designed to serve a range of household sizes, supporting consistent occupancy potential within the South Loop’s renter-focused environment.
Key Highlights
- 30‑unit multifamily building at 1323 South Michigan Avenue in Chicago’s South Loop.
- Unit mix includes 13 one‑bedroom/1‑bath units, 5 one‑bedroom‑plus/1.5‑bath units, and 12 larger units (1.5–2.5 bedrooms).
- Includes 6 units with 1.5 bedrooms/2 bathrooms and 6 units with 2.5 bedrooms/2 bathrooms.
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
$535,386
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
5.95%
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%
$10,707,720
$10.7M
Cap Rate 7%
$7,648,371
$7.6M
Cap Rate 9%
$5,948,733
$5.9M
Market Conditions
NOI Build-Up for 34,926 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
$1.03M $29.40/SF
− Vacancy
−$53.4K −$1.53/SF
EGI
$973.4K $27.87/SF
− OpEx
−$438.0K −$12.54/SF
NOI
$535.4K $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%
$10,707,720
Cap Rate 7%
$7,648,371
Cap Rate 9%
$5,948,733
Alternative Uses
Best Use
Apartment 5plus
$7.65M
$6.69M – $8.92M
NOI $535,386 @ 7.0% cap · market cap 5.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$16.47M
$14.41M – $19.21M
NOI $1,152,726 @ 7.0% cap · market cap 12.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
30
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,301
Businesses Nearby
Explore this area
Business Placement
Demographics for 60605, IL
34,071
Population
20,478
Households
1.7
Avg Household Size
34
Median Age
82%
College-Educated
96%
High-School Grad
1.4 sq mi
ZIP Area
24,336
Density / Sq Mi
$118,403
Median Household Income
$82,091
Median Earnings
$2,402
Median Rent
$495,900
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 - 30-unit apartment building featuring a mix of 1-, 1.5-, and 2.5-bedroom residences.
Where is this apartment building located?
The property is located at 1323 S Michigan Ave Chicago, IL.
What is the asking price?
The asking price for this property is $9,000,000.
What are key features of this property?
This property features: 30‑unit multifamily building at 1323 South Michigan Avenue in Chicago’s South Loop.; Unit mix includes 13 one‑bedroom/1‑bath units, 5 one‑bedroom‑plus/1.5‑bath units, and 12 larger units (1.5–2.5 bedrooms).; Includes 6 units with 1.5 bedrooms/2 bathrooms and 6 units with 2.5 bedrooms/2 bathrooms.
