Industrial Building with Drive-In
For Sale
$699,000
1831 N Lorel Avenue, Chicago, IL 60639
Well-maintained industrial building with drive-in access, newer roof, updated office/restroom, and fenced employee parking.
Property Size6,700 SF
Price / SF$104.33
Days on Market49
Property Features for 1831 N Lorel Avenue
General Information
Standard status
Active
Size
6,700 SF
Property subtype
Commercial
Zoning
INDUS
Additional Details
Fenced Yard
Yes
Taxes and HOA fees
Annual Taxes
$22,552
Building Details
Building Size
6,700 SF
Year Built
1957
Buildings
1
Stories
1
Listing Agency:
Ruiz Realty, Inc.
(773) 767-9470
Listed By:
Miguel Sanchez · License #471020892
(773) 767-9470
Source:
Birdrealtysells
Added: Jun 26
Changed: Aug 8
Last Checked: Aug 12 at 12:16PM
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 Ruiz Realty, Inc.
Investment Insights
Based on property information with market context.
This well-maintained industrial building offers a versatile layout for industrial use, including manufacturing, warehousing, distribution, fabrication, and other industrial operations. The property includes a recently updated office and restroom, a newer roof, and energy-efficient LED lighting, supporting day-to-day operational needs. High ceilings and flexible warehouse space are complemented by drive-in access.
The building includes ample fenced parking for employees and customers. It is currently being used as a die casting manufacturing facility.
The industrial configuration is supported by drive-in access and suitable ceiling height for a range of industrial activities. Additional exterior parking is fenced to support on-site operations.
The building includes ample fenced parking for employees and customers. It is currently being used as a die casting manufacturing facility.
The industrial configuration is supported by drive-in access and suitable ceiling height for a range of industrial activities. Additional exterior parking is fenced to support on-site operations.
Key Highlights
- 6,700‑SF industrial building built in 1957 in the Galewood Industrial Corridor
- Recently updated office and restroom
- Newer roof and energy‑efficient LED lighting
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
$31,811
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
4.55%
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%
$636,220
$636.2K
Cap Rate 7%
$454,443
$454.4K
Cap Rate 9%
$353,456
$353.5K
Market Conditions
NOI Build-Up for 6,700 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
$43.4K $6.48/SF
− Vacancy
−$6.0K −$0.89/SF
EGI
$37.4K $5.59/SF
− OpEx
−$5.6K −$0.84/SF
NOI
$31.8K $4.75/SF
Area
ZIP 60639
Vacancy
13.80%
Lease Rate
$6.48 /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%
$636,220
Cap Rate 7%
$454,443
Cap Rate 9%
$353,456
Alternative Uses
Best Use
Warehouse
$454.4K
$397.6K – $530.2K
NOI $31,811 @ 7.0% cap · market cap 4.55%
Second Best
Industrial
$374.2K
$327.5K – $436.6K
NOI $26,197 @ 7.0% cap · market cap 3.75%
Theoretical Best
Office A
$2.96M
$2.59M – $3.46M
NOI $207,368 @ 7.0% cap · market cap 29.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,002
Businesses Nearby
Explore this area
Business Placement
Demographics for 60639, IL
89,543
Population
28,656
Households
3.1
Avg Household Size
34
Median Age
15%
College-Educated
69%
High-School Grad
5.0 sq mi
ZIP Area
17,909
Density / Sq Mi
$59,710
Median Household Income
$34,846
Median Earnings
$1,212
Median Rent
$289,000
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?
Manufacturing property - Well-maintained industrial building with drive-in access, newer roof, updated office/restroom, and fenced employee parking.
Where is this manufacturing property located?
The property is located at 1831 N Lorel Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: 6,700‑SF industrial building built in 1957 in the Galewood Industrial Corridor; Recently updated office and restroom; Newer roof and energy‑efficient LED lighting
