Mixed-Use Restaurant and Event
For Sale
$6,499,000
2528 S Kedzie Ave, Chicago, IL 60623
Includes a banquet hall, bar and lounge, commercial kitchen, patio, and two second-floor apartments.
Property Size22,017 SF
Price / SF$295.18
Days on Market39
Property Features for 2528 S Kedzie Ave
General Information
Standard status
Active
Size
22,017 SF
Total Parking Spaces
94
Property subtype
Business Opportunity
Restaurant
Patio
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Amenities
Freight elevator
Walk-in coolers
Blast freezers
10 New HVAC units
Wheelchair accessible
Listing Agency:
RE/MAX 1st Service
Listed By:
Yiselle Bryce
Source:
Realtopiare
Added: Jul 22
Changed: Aug 28
Last Checked: Aug 28 at 8:47PM
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 RE/MAX 1st Service
Investment Insights
Based on property information with market context.
This 22,017-square-foot mixed-use property combines a full-service Mexican restaurant with banquet, lounge, and event facilities at 2528 S Kedzie Ave in Chicago’s Little Village neighborhood. The improvements include a commercial kitchen, walk-in coolers, blast freezers, storage areas, a freight elevator, professional-grade restaurant equipment, and complete FF&E. A patio, bar and lounge, banquet hall, and wheelchair-accessible layout support food service and event operations. Two apartments occupy the second floor, and 10 new HVAC units provide building-wide climate control. Renovations were completed from 2020 through 2025.
The property is organized across 13 PINs and includes two parking lots with a combined 94 spaces: 48 spaces in Parking Lot #1 and 46 spaces in Parking Lot #2. The venue has hosted private parties, weddings, quinceañeras, community gatherings, religious celebrations, corporate events, and live music performances. Its food and beverage offering includes traditional Mexican cuisine, a full-service bar, and mariachi entertainment.
The property is organized across 13 PINs and includes two parking lots with a combined 94 spaces: 48 spaces in Parking Lot #1 and 46 spaces in Parking Lot #2. The venue has hosted private parties, weddings, quinceañeras, community gatherings, religious celebrations, corporate events, and live music performances. Its food and beverage offering includes traditional Mexican cuisine, a full-service bar, and mariachi entertainment.
Key Highlights
- 22,017‑square‑foot mixed‑use restaurant and entertainment property across 13 PINs
- Renovations completed from 2020‑2025
- Two parking lots provide 94 spaces total: 48 in Lot #1 and 46 in Lot #2
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
$409,780
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
6.31%
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%
$8,195,600
$8.2M
Cap Rate 7%
$5,854,000
$5.9M
Cap Rate 9%
$4,553,111
$4.6M
Market Conditions
NOI Build-Up for 22,017 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
$581.2K $26.40/SF
− Vacancy
−$34.9K −$1.58/SF
EGI
$546.4K $24.82/SF
− OpEx
−$136.6K −$6.20/SF
NOI
$409.8K $18.61/SF
Area
Chicago, IL
Vacancy
6.00%
Lease Rate
$26.40 /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%
$8,195,600
Cap Rate 7%
$5,854,000
Cap Rate 9%
$4,553,111
Alternative Uses
Best Use
Specialty Retail
$5.85M
$5.12M – $6.83M
NOI $409,780 @ 7.0% cap · market cap 6.31%
Second Best
Mixed Use
$5.31M
$4.64M – $6.19M
NOI $371,537 @ 7.0% cap · market cap 5.72%
Theoretical Best
Office A
$10.38M
$9.08M – $12.11M
NOI $726,667 @ 7.0% cap · market cap 11.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,729
Businesses Nearby
115k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 74%
Shops & Services 26%
McDonald's
Dining
36,596 visits/mo
0.1 miles
Taqueria Los Comales
Dining
16,744 visits/mo
0.1 miles
Shell
Shops & Services
15,532 visits/mo
0.1 miles
Popeyes Louisiana Kitchen
Dining
11,043 visits/mo
0.5 miles
Dunkin' Donuts
Dining
10,845 visits/mo
0.4 miles
Demographics for 60623, IL
87,649
Population
31,300
Households
2.8
Avg Household Size
32
Median Age
14%
College-Educated
69%
High-School Grad
5.4 sq mi
ZIP Area
16,231
Density / Sq Mi
$44,040
Median Household Income
$32,642
Median Earnings
$1,054
Median Rent
$221,400
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Includes a banquet hall, bar and lounge, commercial kitchen, patio, and two second-floor apartments.
Where is this mixed-use property located?
The property is located at 2528 S Kedzie Ave Chicago, IL.
What is the asking price?
The asking price for this property is $6,499,000.
What are key features of this property?
This property features: 22,017‑square‑foot mixed‑use restaurant and entertainment property across 13 PINs; Renovations completed from 2020‑2025; Two parking lots provide 94 spaces total: 48 in Lot #1 and 46 in Lot #2
