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    Historic Motor Row Building Title is generated by Realmo AI

    2229 S Michigan Ave, Chicago, IL 60616

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    Charming building in Chicago's Motor Row, near McCormick Place.

    Type:Retail, Office, Mixed Use
    Property size:
    29,834 SF
    Added:
    Jul 23, 2020
    Days on Market:
    2145
    Last Refresh:
    May 19 at 9:18 pm

    Property Features for 2229 S Michigan Ave

    General Information

    Standard status
    Active
    Size
    29,834 SF
    Property subtype
    Retail, Office, Mixed Use

    Building Details

    Year Built
    1918

    We can help!

    Listing Contact
    Milan Rubenstein

    Listing agent Milan Rubenstein License #IL 01324137

    Listing office Windy City RE LLC

    Listing date Jul 23, 2020

    Source Crexi

    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 Windy City RE LLC

    HighLights

    • Versatile zoning allows for public, institutional, retail, and residential uses.
    • Prime South Loop location near McCormick Place, Wintrust Arena, Hyatt Hotel, and Marriott Marquis Hotel.
    • Part of Chicago's historic Motor Row, soon to be the Entertainment District.
    • Close proximity to CTA Red & Green Line and I‑55 Expressway.
    • Solid construction, appealing historic façade, and very high ceilings.
    • Located two blocks from the Cermak Green Line L Station and near a $390M expansion project.

    Overview

    Located in the South Loop, the property at 2229 S Michigan Avenue is a decorative building suitable for various users. Its zoning accommodates public, institutional, retail, and residential uses. The building is near McCormick Place, Millennium Park, CTA Red & Green Line, I-55 Expressway, and Downtown Chicago. It features solid construction, an appealing and historic façade, and very high ceilings. Formerly a Ford Motor Company showroom, this building is part of Chicago's historic Motor Row, soon to be the Entertainment District. It is a short distance from McCormick Place, Wintrust Arena, an 800-room Hyatt Hotel, and the Marriott Marquis Hotel. The Cermak Green Line L Station is two blocks away. A $390 million expansion project is underway nearby to create McCormick Square, a destination for new nightlife, hotels, and retail attractions. The property size is 29834 square feet.
    Property Profile Location Intelligence

    Current Use by Public Records

    Lips Drag Queen ... Restaurant Chicago House & Social ... Social Service Agency Fly Club Training Center Bellagio 223 Wedding Service People's Lobby Charitable Organization

    Suggested Use

    Real Estate Agency Law Firm Restaurant Spa & Massage Center Dental Office Hair Salon Nail Salon Building Supply Daycare Center Gym & Fitness Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Chicago
    County
    Cook
    State
    Illinois
    Longitude
    -87.6233481
    Latitude
    41.8520579

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    FAQs

    What type of property is this?
    Mixed-use property - Charming building in Chicago's Motor Row, near McCormick Place.
    Where is this mixed-use property located?
    The property is located at 2229 S Michigan Ave Chicago, IL.
    What are key features of this property?
    This property features: Versatile zoning allows for public, institutional, retail, and residential uses.; Prime South Loop location near McCormick Place, Wintrust Arena, Hyatt Hotel, and Marriott Marquis Hotel.; Part of Chicago's historic Motor Row, soon to be the Entertainment District.
    We can help!
    Contact for Pricing
    Please call us for current price
    and status of this listing
    Milan Rubenstein
    Real Estate License ID: IL 01324137
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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