West Loop Commercial Space
For Sale
Contact for pricing
15 S Racine Ave, Chicago, IL 60607
Commercial space in West Loop with seller financing opportunity.
Property Size1,150 SF
Price / SF$347.83
Days on Market2297
Property Features for 15 S Racine Ave
General Information
Standard status
Active
Size
1,150 SF
Property subtype
Retail, Office
Occupancy
100%
Lease Type
Gross
Investment Type
Stabilized
Net Operating Income
$22,548
Building Details
Year Built
2009
Units
1
Tenancy
Single
Listing Agency:
Quest Realty Group
Listed By:
Jason Vondrachek · License #471.007493
Source:
Crexi
Added: May 26, 2020
Changed: Aug 8
Last Checked: Jul 31 at 3:47AM
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 Quest Realty Group
Investment Insights
Based on property information with market context.
Located in the West Loop, just south of the Madison/Racine stoplight intersection, this commercial space offers an opportunity with seller financing. The property has a 6.72% capitalization rate with a 22.2% levered annual return during the 0% seller financing period. The purchase price is $400,000, with $100,000 down and $300,000 seller financed at 0% for 30 months. The net operating income is $24,016. At the end of the 30-month period, the balance would be approximately $244,500, and the seller will continue to carry financing at 6% beyond the initial period. The seller will continue to manage the property. The real estate office has occupied the 1,150 square foot space for over 11 years. The tenant pays all utilities, which are separately metered for the space. Other spaces are available with similar terms in West Loop, Wicker Park, and Lakeview.
Key Highlights
- 0% Seller Financing Available for 30 Months
- Zero Landlord Responsibility (Seller Manages)
- Attractive 6.72% Cap Rate
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
$24,674
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
6.17%
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%
$493,480
$493.5K
Cap Rate 7%
$352,486
$352.5K
Cap Rate 9%
$274,156
$274.2K
Market Conditions
NOI Build-Up for 1,150 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
$44.2K $38.40/SF
− Vacancy
−$11.3K −$9.79/SF
EGI
$32.9K $28.61/SF
− OpEx
−$8.2K −$7.15/SF
NOI
$24.7K $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%
$493,480
Cap Rate 7%
$352,486
Cap Rate 9%
$274,156
Alternative Uses
Best Use
Office B
$352.5K
$308.4K – $411.2K
NOI $24,674 @ 7.0% cap · market cap 6.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$542.2K
$474.5K – $632.6K
NOI $37,956 @ 7.0% cap · market cap 9.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,089
Businesses Nearby
Explore this area
Business Placement
Demographics for 60607, IL
31,816
Population
16,540
Households
1.9
Avg Household Size
31
Median Age
81%
College-Educated
97%
High-School Grad
2.3 sq mi
ZIP Area
13,833
Density / Sq Mi
$126,307
Median Household Income
$79,870
Median Earnings
$2,333
Median Rent
$494,300
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?
Office units - Commercial space in West Loop with seller financing opportunity.
Where is this office units located?
The property is located at 15 S Racine Ave Chicago, IL.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 0% Seller Financing Available for 30 Months; Zero Landlord Responsibility (Seller Manages); Attractive 6.72% Cap Rate
