Freight-Served Food Production
For Sale
Contact for pricing
1850 W Fulton St, Chicago, IL 60612
Former food production space with freight elevator, floor drains, and abundant natural light.
Property Size25,000 SF
Price / SF$119
Days on Market491
Property Features for 1850 W Fulton St
General Information
Standard status
Active
Size
25,000 SF
Property subtype
INDUSTRIAL
Amenities
natural light
partially air-conditioned 2nd floor
freight elevator
floor drains
Listing Agency:
CBRE | Chicago
(312) 735-6510
Listed By:
Matt Cowie
(312) 735-6510
Source:
Moodyscre
Added: Apr 7, 2025
Changed: Jul 25
Last Checked: Aug 9 at 2:04PM
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 CBRE | Chicago
Investment Insights
Based on property information with market context.
This former food production building offers a practical industrial layout with abundant natural light and partially air-conditioned second-floor space. The property includes a freight elevator and floor drains, supporting a wide range of production and industrial workflows.
The offering is for sale.
The building’s listed improvements and features include a freight elevator, floor drains, and partially air-conditioned areas on the second floor, which can support operations requiring internal material handling and drainage capability.
The offering is for sale.
The building’s listed improvements and features include a freight elevator, floor drains, and partially air-conditioned areas on the second floor, which can support operations requiring internal material handling and drainage capability.
Key Highlights
- Former food production space
- Freight elevator
- Floor drains
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
$156,774
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
5.23%
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%
$3,135,480
$3.1M
Cap Rate 7%
$2,239,629
$2.2M
Cap Rate 9%
$1,741,933
$1.7M
Market Conditions
NOI Build-Up for 25,000 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
$235.8K $9.43/SF
− Vacancy
−$11.8K −$0.47/SF
EGI
$224.0K $8.96/SF
− OpEx
−$67.2K −$2.69/SF
NOI
$156.8K $6.27/SF
Area
Chicago, IL
Vacancy
5.00%
Lease Rate
$9.43 /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%
$3,135,480
Cap Rate 7%
$2,239,629
Cap Rate 9%
$1,741,933
Alternative Uses
Best Use
Industrial
$2.24M
$1.96M – $2.61M
NOI $156,774 @ 7.0% cap · market cap 5.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.79M
$10.31M – $13.75M
NOI $825,120 @ 7.0% cap · market cap 27.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,614
Businesses Nearby
Explore this area
Business Placement
Demographics for 60612, IL
34,402
Population
16,763
Households
2.1
Avg Household Size
34
Median Age
41%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
9,298
Density / Sq Mi
$60,457
Median Household Income
$46,582
Median Earnings
$1,330
Median Rent
$331,600
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Former food production space with freight elevator, floor drains, and abundant natural light.
Where is this manufacturing property located?
The property is located at 1850 W Fulton St Chicago, IL.
What is the asking price?
The asking price for this property is $2,999,999.
What are key features of this property?
This property features: Former food production space; Freight elevator; Floor drains
