Flex Space with Production
For Sale
$619,000
2405 W Ardmore Avenue, Chicago, IL 60659
Adaptable commercial facility with a functional configuration for production, storage, distribution, and related industrial operations.
Property Size5,100 SF
Price / SF$121.37
Days on Market23
Property Features for 2405 W Ardmore Avenue
General Information
Standard status
Active
Size
5,100 SF
Property subtype
Commercial
Zoning
COMMR
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$19,639
Building Details
Building Size
5,100 SF
Year Built
1925
Stories
1
Listing Agency:
Century 21 Circle
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(773) 465-4200
Source:
Gia-sells
Added: Aug 7
Changed: Aug 28
Last Checked: Aug 28 at 2:57PM
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 Century 21 Circle
Investment Insights
Based on property information with market context.
Built in 1925, this approximately 5,100-square-foot commercial building previously operated as a food processing facility. Its existing functional arrangement supports a range of potential applications, including food production, commissary kitchen operations, catering, bakery use, packaging, distribution, cold storage, warehouse functions, and light manufacturing.
The property is in Chicago’s West Ridge/Budlong Woods area near Western Avenue, Peterson Avenue, and Lincoln Avenue. Access to I-90/94 and Lake Shore Drive connects the building with Chicago’s North Side, while Metra service is a few blocks away. O’Hare International Airport is approximately 30-40minutes away, with major business corridors and residential neighborhoods also identified in the surrounding area.
The property is in Chicago’s West Ridge/Budlong Woods area near Western Avenue, Peterson Avenue, and Lincoln Avenue. Access to I-90/94 and Lake Shore Drive connects the building with Chicago’s North Side, while Metra service is a few blocks away. O’Hare International Airport is approximately 30-40minutes away, with major business corridors and residential neighborhoods also identified in the surrounding area.
Key Highlights
- Approximately 5,100 Sq. Ft. commercial building
- Former food processing facility with an existing functional layout
- Potential applications include commissary kitchen, catering, bakery, packaging, and cold storage
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
$38,631
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
6.24%
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%
$772,620
$772.6K
Cap Rate 7%
$551,871
$551.9K
Cap Rate 9%
$429,233
$429.2K
Market Conditions
NOI Build-Up for 5,100 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
$48.1K $9.43/SF
− Vacancy
−$2.6K −$0.52/SF
EGI
$45.4K $8.91/SF
− OpEx
−$6.8K −$1.34/SF
NOI
$38.6K $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%
$772,620
Cap Rate 7%
$551,871
Cap Rate 9%
$429,233
Alternative Uses
Best Use
Specialty Retail
$1.36M
$1.19M – $1.58M
NOI $94,921 @ 7.0% cap · market cap 15.33%
Second Best
Flex RnD
$841.1K
$735.9K – $981.2K
NOI $58,874 @ 7.0% cap · market cap 9.51%
Theoretical Best
Office A
$2.40M
$2.10M – $2.81M
NOI $168,324 @ 7.0% cap · market cap 27.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,659
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60659, IL
40,579
Population
14,748
Households
2.8
Avg Household Size
36
Median Age
40%
College-Educated
82%
High-School Grad
2.4 sq mi
ZIP Area
16,908
Density / Sq Mi
$70,033
Median Household Income
$40,493
Median Earnings
$1,391
Median Rent
$358,800
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Adaptable commercial facility with a functional configuration for production, storage, distribution, and related industrial operations.
Where is this flex space located?
The property is located at 2405 W Ardmore Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $619,000.
What are key features of this property?
This property features: Approximately 5,100 Sq. Ft. commercial building; Former food processing facility with an existing functional layout; Potential applications include commissary kitchen, catering, bakery, packaging, and cold storage
