Chicago Cold Storage
For Sale
$35,000,000
1556 W 43rd St, Chicago, IL 60609
224,878 SF cold storage facility in Chicago Stockyards.
Property Size224,878 SF
Lot Size6.81 Acres
Price / SF$155.64
Days on Market165
Property Features for 1556 W 43rd St
General Information
Standard status
Active
Size
224,878 SF
Lot size
6.81 Acres
Property subtype
Industrial
Building Details
Building Size
224,878 SF
Year Built
1973
Listing Agency:
NAI Hiffman
(708) 539-6398
Listed By:
John Basile · License #475166355
(708) 539-6398
Source:
Naiglobal
Added: Mar 6
Changed: Aug 14
Last Checked: Aug 18 at 6:20AM
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 NAI Hiffman
Investment Insights
Based on property information with market context.
Located in the Chicago Stockyards, this cold storage facility offers approximately 224,878 square feet of space and is available for both lease and sale, with the possibility of demising. The site spans 6.81 acres and includes 11,287 square feet of office space and 192,942 square feet of freezer/cooler space. It features 18 exterior docks, ceiling heights of 24 and 33 feet, and parking for 53 cars and 17 trailers. Zoned PMD 8 with 6B approval, the property is ideally situated with close proximity to I-55, I-90, and the Chicago Business District. The facility is equipped with a 40,000 lbs Ammonia System, glycol floors in all freezers and a convertible cooler, and floor drains in USDA and Tempering Rooms. The main condenser was replaced in 2024. Multiple temperature configurations are possible, including deep freeze capabilities down to -25 degrees. Significant upgrades are scheduled for completion in 2025. The property also includes significant employee wellness infrastructure.
Key Highlights
- Large Cold Storage Facility: Boasting +/- 224,878 SF of freezer/cooler space (192,942 SF).
- Prime Location: Situated in the heart of the Chicago Stockyards PMD, with convenient access to I‑55, I‑90, and the Chicago Business District.
- Flexible Options: Available for lease or sale, and the space can be demised to suit your needs.
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
$1,703,372
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
4.87%
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%
$34,067,440
$34.1M
Cap Rate 7%
$24,333,886
$24.3M
Cap Rate 9%
$18,926,356
$18.9M
Market Conditions
NOI Build-Up for 224,878 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
$2.12M $9.43/SF
− Vacancy
−$116.6K −$0.52/SF
EGI
$2.00M $8.91/SF
− OpEx
−$300.6K −$1.34/SF
NOI
$1.70M $7.57/SF
Area
Chicago, IL
Vacancy
5.50%
Lease Rate
$9.43 /SF/Yr
Expense Ratio
15.00%
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%
$34,067,440
Cap Rate 7%
$24,333,886
Cap Rate 9%
$18,926,356
Alternative Uses
Best Use
Warehouse
$24.33M
$21.29M – $28.39M
NOI $1,703,372 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$106.03M
$92.78M – $123.70M
NOI $7,422,053 @ 7.0% cap · market cap 21.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
915
Businesses Nearby
Explore this area
Business Placement
Demographics for 60609, IL
65,770
Population
26,122
Households
2.5
Avg Household Size
34
Median Age
20%
College-Educated
76%
High-School Grad
7.7 sq mi
ZIP Area
8,542
Density / Sq Mi
$54,142
Median Household Income
$37,694
Median Earnings
$1,070
Median Rent
$251,600
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Refrigerated & cold storage - 224,878 SF cold storage facility in Chicago Stockyards.
Where is this refrigerated & cold storage located?
The property is located at 1556 W 43rd St Chicago, IL.
What is the asking price?
The asking price for this property is $35,000,000.
What are key features of this property?
This property features: Large Cold Storage Facility: Boasting +/- 224,878 SF of freezer/cooler space (192,942 SF).; Prime Location: Situated in the heart of the Chicago Stockyards PMD, with convenient access to I‑55, I‑90, and the Chicago Business District.; Flexible Options: Available for lease or sale, and the space can be demised to suit your needs.
