Mixed-Use Building With Four Commercial
For Sale
$2,250,000
1723 South Ashland Avenue, Chicago, IL 60608
B3-2-zoned property combines commercial occupancy with residential apartments.
Property Size11,800 SF
Days on Market1389
Property Features for 1723 South Ashland Avenue
General Information
Standard status
Active
Size
11,800 SF
Property subtype
MF, MU
Zoning
B3-2
Site & Location
Corner Location
Yes
Traffic Count
35,876 vehicles/day
Additional Details
Multifamily Units
8
Building Details
Building Size
11,800 SF
Year Built
1930
Buildings
2
Stories
3
Units
12
Tenancy
Multi
Listing Agency:
Keller Williams ONEChicago
(312) 730-2029
Listed By:
Manny Regalado
(312) 730-2029
Source:
Realnex
Added: Nov 11, 2022
Changed: Aug 30
Last Checked: Aug 30 at 12:50PM
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 Keller Williams ONEChicago
Investment Insights
Based on property information with market context.
Constructed in 1930, this mixed-use building includes four commercial spaces and eight residential units. The property also presents the possibility of creating a ninth residential unit, subject to applicable requirements. Commercial spaces are occupied by long-standing tenants, supporting an established mixed-use configuration.
The building occupies the northeast corner of South Ashland Avenue and 18th Street in Chicago. That intersection records a daily average vehicle count of 35,876, providing measurable exposure for the commercial component. The property is located at 1723 South Ashland Avenue, Chicago, Illinois 60608.
The building occupies the northeast corner of South Ashland Avenue and 18th Street in Chicago. That intersection records a daily average vehicle count of 35,876, providing measurable exposure for the commercial component. The property is located at 1723 South Ashland Avenue, Chicago, Illinois 60608.
Key Highlights
- Four commercial spaces and eight residential units
- Potential to increase residential unit count from eight to nine
- B3‑2 zoning designation
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
$199,125
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
8.85%
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%
$3,982,500
$4.0M
Cap Rate 7%
$2,844,643
$2.8M
Cap Rate 9%
$2,212,500
$2.2M
Market Conditions
NOI Build-Up for 11,800 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
$354.0K $30.00/SF
− Vacancy
−$35.4K −$3.00/SF
EGI
$318.6K $27.00/SF
− OpEx
−$119.5K −$10.13/SF
NOI
$199.1K $16.88/SF
Area
Chicago, IL
Vacancy
10.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$3,982,500
Cap Rate 7%
$2,844,643
Cap Rate 9%
$2,212,500
Alternative Uses
Best Use
Mixed Use
$2.84M
$2.49M – $3.32M
NOI $199,125 @ 7.0% cap · market cap 8.85%
Second Best
Apartment 5plus
$2.58M
$2.26M – $3.01M
NOI $180,884 @ 7.0% cap · market cap 8.04%
Theoretical Best
Office A
$5.56M
$4.87M – $6.49M
NOI $389,457 @ 7.0% cap · market cap 17.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Residential units
35,876 VPD
Traffic count
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,142
Businesses Nearby
Explore this area
Business Placement
Demographics for 60608, IL
75,770
Population
32,617
Households
2.3
Avg Household Size
34
Median Age
34%
College-Educated
77%
High-School Grad
6.2 sq mi
ZIP Area
12,221
Density / Sq Mi
$70,704
Median Household Income
$42,211
Median Earnings
$1,208
Median Rent
$341,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - B3-2-zoned property combines commercial occupancy with residential apartments.
Where is this mixed-use property located?
The property is located at 1723 South Ashland Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Four commercial spaces and eight residential units; Potential to increase residential unit count from eight to nine; B3‑2 zoning designation
