Mixed-Use Building with
For Sale
$1,749,000
1140 W 18th Street, Chicago, IL 60608
Leased urban property combines restaurant space with renovated apartments and gross leases.
Property Size8,000 SF
Price / SF$218.63
Days on Market479
Property Features for 1140 W 18th Street
General Information
Standard status
Active
Size
8,000 SF
Property subtype
Mixed Use
Occupancy
100%
Net Operating Income
$85,537
Units
Unit Mix
3 x 2BR/1BA, 3 x 1BR/1BA
Multifamily Units
6
Additional Details
Cap Rate
4.89%
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$13,941
Amenities
Window Air Conditioning
3
Building Details
Year Built
1885
Buildings
1
Tenancy
Multi
Listing Agency:
Strauss Realty Ltd
(773) 736-3600
Listed By:
Craig Wolf · License #475163046
(773) 736-3600
Source:
Xome
Added: May 9, 2025
Changed: Aug 30
Last Checked: Aug 30 at 1:23PM
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 Strauss Realty Ltd
Investment Insights
Based on property information with market context.
This approximately 8,000-square-foot mixed-use building, constructed in 1885, includes a ground-floor restaurant space and six renovated residential units. The apartment inventory comprises three 2-bedroom/1-bath units and three 1-bedroom/1-bath units, with stainless steel appliances, granite countertops, updated flooring, and individual utilities. The property is fully leased, and all leases are structured as gross leases.
The building is located near 18th Street and Racine Avenue in Chicago’s Pilsen neighborhood. Transit options include the CTA Pink Line and multiple bus routes, with nearby expressways providing additional regional access. The surrounding area includes local businesses, restaurants, and cultural destinations, along with a walkable urban setting.
The property carries an in-place cap rate of 4.89% and offers a combination of commercial and residential occupancy within a single building.
The building is located near 18th Street and Racine Avenue in Chicago’s Pilsen neighborhood. Transit options include the CTA Pink Line and multiple bus routes, with nearby expressways providing additional regional access. The surrounding area includes local businesses, restaurants, and cultural destinations, along with a walkable urban setting.
The property carries an in-place cap rate of 4.89% and offers a combination of commercial and residential occupancy within a single building.
Key Highlights
- Approximately 8,000 square feet of mixed‑use space
- Six renovated residential units: three 2‑bedroom/1‑bath and three 1‑bedroom/1‑bath apartments
- Ground‑floor restaurant space with fully leased occupancy
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
$148,896
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
8.51%
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%
$2,977,920
$3.0M
Cap Rate 7%
$2,127,086
$2.1M
Cap Rate 9%
$1,654,400
$1.7M
Market Conditions
NOI Build-Up for 8,000 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
$211.2K $26.40/SF
− Vacancy
−$12.7K −$1.58/SF
EGI
$198.5K $24.82/SF
− OpEx
−$49.6K −$6.20/SF
NOI
$148.9K $18.61/SF
Area
Chicago, IL
Vacancy
6.00%
Lease Rate
$26.40 /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%
$2,977,920
Cap Rate 7%
$2,127,086
Cap Rate 9%
$1,654,400
Alternative Uses
Best Use
Specialty Retail
$2.13M
$1.86M – $2.48M
NOI $148,896 @ 7.0% cap · market cap 8.51%
Second Best
Mixed Use
$1.93M
$1.69M – $2.25M
NOI $135,000 @ 7.0% cap · market cap 7.72%
Theoretical Best
Office A
$3.77M
$3.30M – $4.40M
NOI $264,038 @ 7.0% cap · market cap 15.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,803
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
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Leased urban property combines restaurant space with renovated apartments and gross leases.
Where is this mixed-use property located?
The property is located at 1140 W 18th Street Chicago, IL.
What is the asking price?
The asking price for this property is $1,749,000.
What are key features of this property?
This property features: Approximately 8,000 square feet of mixed‑use space; Six renovated residential units: three 2‑bedroom/1‑bath and three 1‑bedroom/1‑bath apartments; Ground‑floor restaurant space with fully leased occupancy
