Freestanding Restaurant with
For Sale
$489,900
556 N Cicero Avenue, Chicago, IL 60644
Established restaurant facility with a finished basement, dedicated parking, and a broad package of cooking and food-preparation equipment.
Property Size2,300 SF
Price / SF$213
Days on Market1281
Property Features for 556 N Cicero Avenue
General Information
Standard status
Active
Size
2,300 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$14,912
Amenities
full finished basement with storage racks and office
Listing Agency:
Northlake Realtors
(708) 562-5689
Listed By:
Rene Aguirre · License #475127208
(708) 351-3144
Source:
Exitrealty
Added: Mar 2, 2023
Changed: Sep 2
Last Checked: Sep 2 at 5:22PM
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 Northlake Realtors
Investment Insights
Based on property information with market context.
This freestanding restaurant building contains 2,300 square feet and is offered with dedicated parking. The facility includes a finished basement with storage racks and an office, providing additional back-of-house support space. Kitchen equipment includes a grilling station, open fryers, a dishwashing station, and a pizza oven.
The roof is 4 years old, the HVAC system is 2 years old, and the parking lot has new cement. The property also includes the vacant lot located south of the restaurant, identified by PIN 16092210360000, while the restaurant and parking lot are identified by PIN 16092210350000.
The roof is 4 years old, the HVAC system is 2 years old, and the parking lot has new cement. The property also includes the vacant lot located south of the restaurant, identified by PIN 16092210360000, while the restaurant and parking lot are identified by PIN 16092210350000.
Key Highlights
- 2,300‑square‑foot freestanding restaurant building
- Roof is 4 years old; HVAC system is 2 years old
- Finished basement with storage racks and an office
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
$42,808
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
8.74%
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%
$856,160
$856.2K
Cap Rate 7%
$611,543
$611.5K
Cap Rate 9%
$475,644
$475.6K
Market Conditions
NOI Build-Up for 2,300 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
$60.7K $26.40/SF
− Vacancy
−$3.6K −$1.58/SF
EGI
$57.1K $24.82/SF
− OpEx
−$14.3K −$6.20/SF
NOI
$42.8K $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%
$856,160
Cap Rate 7%
$611,543
Cap Rate 9%
$475,644
Alternative Uses
Best Use
Specialty Retail
$611.5K
$535.1K – $713.5K
NOI $42,808 @ 7.0% cap · market cap 8.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.08M
$948.9K – $1.27M
NOI $75,911 @ 7.0% cap · market cap 15.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
904
Businesses Nearby
13k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 73%
Electronics 27%
Marathon
Shops & Services
9,766 visits/mo
0.4 miles
Boost Mobile
Electronics
3,547 visits/mo
0.5 miles
Demographics for 60644, IL
47,239
Population
20,619
Households
2.3
Avg Household Size
36
Median Age
11%
College-Educated
85%
High-School Grad
3.5 sq mi
ZIP Area
13,497
Density / Sq Mi
$37,952
Median Household Income
$31,304
Median Earnings
$1,096
Median Rent
$238,300
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant facility with a finished basement, dedicated parking, and a broad package of cooking and food-preparation equipment.
Where is this conventional restaurant located?
The property is located at 556 N Cicero Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $489,900.
What are key features of this property?
This property features: 2,300‑square‑foot freestanding restaurant building; Roof is 4 years old; HVAC system is 2 years old; Finished basement with storage racks and an office
