Live-Work Food Production
For Sale
$3,249,000
2054 W Grand Avenue Chicago, Chicago, IL 60612
2013 FDA-approved food production live/work building with street-level storefront restaurant, prep kitchens, and a 24' ceiling processing area.
Property Size9,363 SF
Price / SF$347
Days on Market52
Property Features for 2054 W Grand Avenue Chicago
General Information
Standard status
Active
Size
9,363 SF
Property subtype
Mixed Use
Zoning
COMMR
Taxes and HOA fees
Annual Taxes
$25,686
Amenities
Concrete
City Street
72x92
9363
Building Details
Building Size
9,363 SF
Year Built
2013
Stories
3
Listed By:
Anca Contra
(815) 469-7449
Source:
Realpeoplerealty
Added: Jul 13
Changed: Aug 31
Last Checked: Sep 1 at 3:06PM
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 Anca Contra
Investment Insights
Based on property information with market context.
Built in 2013, this designed live/work property features prefabricated concrete wall panels and was constructed as an FDA-approved food production facility. The ground level includes a storefront and restaurant setup for street visibility, along with three commercial kitchen prep spaces supported by multiple exhaust hoods, polished concrete floors, and ample floor drains. A staging area with overhead doors supports shipping and receiving, and a large interior processing and warehousing area offers a 24' ceiling height, with flexible room configuration that allows for open clearing aside from two centrally located columns.
A second-floor office level includes a conference room and two private offices, plus additional warehousing and processing space accessible from the first floor via a safety gate for forklift movement. Floor 3 is a two-bedroom, two-bath residence with floor-to-ceiling windows and a large roof deck.
The building includes ADA-required bathrooms, mechanical rooms on multiple levels, an 800 AMP electrical service, and a Schindler hydraulic passenger elevator with separate keyed access for floors 2 and 3, along with two stairwells. Parking is provided for over six cars, and the property also includes remote-access alarm and camera systems installed in January 2025.
A second-floor office level includes a conference room and two private offices, plus additional warehousing and processing space accessible from the first floor via a safety gate for forklift movement. Floor 3 is a two-bedroom, two-bath residence with floor-to-ceiling windows and a large roof deck.
The building includes ADA-required bathrooms, mechanical rooms on multiple levels, an 800 AMP electrical service, and a Schindler hydraulic passenger elevator with separate keyed access for floors 2 and 3, along with two stairwells. Parking is provided for over six cars, and the property also includes remote-access alarm and camera systems installed in January 2025.
Key Highlights
- Live/work property built in 2013 as an FDA‑approved food production facility with street‑level storefront restaurant for visibility
- 24' ceiling height processing and warehousing area, plus polished concrete floors and ample floor drains on the ground floor
- Three commercial kitchen prep spaces with multiple exhaust hoods, including an 8' hood and approx. 18' hood with make‑up air
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
$200,893
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
6.18%
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%
$4,017,860
$4.0M
Cap Rate 7%
$2,869,900
$2.9M
Cap Rate 9%
$2,232,144
$2.2M
Market Conditions
NOI Build-Up for 9,363 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
$359.5K $38.40/SF
− Vacancy
−$91.7K −$9.79/SF
EGI
$267.9K $28.61/SF
− OpEx
−$67.0K −$7.15/SF
NOI
$200.9K $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%
$4,017,860
Cap Rate 7%
$2,869,900
Cap Rate 9%
$2,232,144
Alternative Uses
Best Use
Office B
$2.87M
$2.51M – $3.35M
NOI $200,893 @ 7.0% cap · market cap 6.18%
Second Best
Specialty Retail
$2.49M
$2.18M – $2.90M
NOI $174,264 @ 7.0% cap · market cap 5.36%
Theoretical Best
Office A
$4.41M
$3.86M – $5.15M
NOI $309,024 @ 7.0% cap · market cap 9.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,404
Businesses Nearby
Explore this area
Business Placement
Demographics for 60612, IL
34,402
Population
16,763
Households
2.1
Avg Household Size
34
Median Age
41%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
9,298
Density / Sq Mi
$60,457
Median Household Income
$46,582
Median Earnings
$1,330
Median Rent
$331,600
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?
Live-work space - 2013 FDA-approved food production live/work building with street-level storefront restaurant, prep kitchens, and a 24' ceiling processing area.
Where is this live-work space located?
The property is located at 2054 W Grand Avenue Chicago Chicago, IL.
What is the asking price?
The asking price for this property is $3,249,000.
What are key features of this property?
This property features: Live/work property built in 2013 as an FDA‑approved food production facility with street‑level storefront restaurant for visibility; 24' ceiling height processing and warehousing area, plus polished concrete floors and ample floor drains on the ground floor; Three commercial kitchen prep spaces with multiple exhaust hoods, including an 8' hood and approx. 18' hood with make‑up air
