Furnished Short-Term Rental
For Sale
$1,500,000
815 North Milwaukee Avenue, Chicago, IL 60642
Standalone commercial property with loft space, full basement, private rooftop, and access to nearby Blue Line transit.
Property Size2,500 SF
Price / SF$600
Days on Market9
Property Features for 815 North Milwaukee Avenue
General Information
Standard status
Active
Size
2,500 SF
Total Parking Spaces
1
Zoning
OTHER
Taxes and HOA fees
Annual Taxes
$18,995
Building Details
Year Built
1914
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Compass
(773) 615-9896
Listed By:
John Federici · License #471007367
(773) 615-9896
Source:
Compass
Added: Aug 22
Changed: Aug 29
Last Checked: May 27 at 9:30AM
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 Compass
Investment Insights
Based on property information with market context.
This standalone commercial property at 815 N Milwaukee Avenue includes 3,208 interior/liveable square feet across the main level and loft, along with a 2,522 SF full unfinished basement. The property is offered fully furnished and currently operates as an Airbnb. Additional features include a private unfinished rooftop, a brand new roof, and a brand new dual-zoned HVAC system.
The building is located in Chicago’s River West area next to the Blue Line. One rental parking space is available in the attached lot next door, with additional rental parking also available. The property is zoned commercial, and the source information identifies potential for short- or long-term furnished rental use, live-work occupancy, creative or professional space, showroom, retail, gallery, social club, or food and beverage use subject to zoning and/or variance requirements.
The building is located in Chicago’s River West area next to the Blue Line. One rental parking space is available in the attached lot next door, with additional rental parking also available. The property is zoned commercial, and the source information identifies potential for short- or long-term furnished rental use, live-work occupancy, creative or professional space, showroom, retail, gallery, social club, or food and beverage use subject to zoning and/or variance requirements.
Key Highlights
- 3,208 interior/liveable square feet across the main level and loft
- 2,522 SF full unfinished basement for storage or potential finishing
- Fully furnished property currently operating as an Airbnb
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
$53,640
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
3.58%
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%
$1,072,800
$1.1M
Cap Rate 7%
$766,286
$766.3K
Cap Rate 9%
$596,000
$596.0K
Market Conditions
NOI Build-Up for 2,500 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
$96.0K $38.40/SF
− Vacancy
−$24.5K −$9.79/SF
EGI
$71.5K $28.61/SF
− OpEx
−$17.9K −$7.15/SF
NOI
$53.6K $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%
$1,072,800
Cap Rate 7%
$766,286
Cap Rate 9%
$596,000
Alternative Uses
Best Use
Office B
$766.3K
$670.5K – $894.0K
NOI $53,640 @ 7.0% cap · market cap 3.58%
Second Best
Mixed Use
$602.7K
$527.4K – $703.1K
NOI $42,188 @ 7.0% cap · market cap 2.81%
Theoretical Best
Office A
$1.18M
$1.03M – $1.38M
NOI $82,512 @ 7.0% cap · market cap 5.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,527
Businesses Nearby
Explore this area
Business Placement
Demographics for 60642, IL
21,687
Population
12,144
Households
1.8
Avg Household Size
33
Median Age
78%
College-Educated
97%
High-School Grad
1.7 sq mi
ZIP Area
12,757
Density / Sq Mi
$141,179
Median Household Income
$90,885
Median Earnings
$2,216
Median Rent
$604,200
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?
Short term rental property - Standalone commercial property with loft space, full basement, private rooftop, and access to nearby Blue Line transit.
Where is this short term rental property located?
The property is located at 815 North Milwaukee Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 3,208 interior/liveable square feet across the main level and loft; 2,522 SF full unfinished basement for storage or potential finishing; Fully furnished property currently operating as an Airbnb
