Mixed-Use Building in Humboldt
For Sale
$1,600,000
2712 W North Avenue, Chicago, IL 60647
Mixed-use building with value-add potential in evolving corridor.
Property Size8,600 SF
Price / SF$186.05
Days on Market159
Property Features for 2712 W North Avenue
General Information
Standard status
Active
Size
8,600 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$18,739
Building Details
Building Size
8,600 SF
Year Built
1915
Stories
3
Units
7
Listing Agency:
Sobiko Brokerage Services, LLC
(312) 380-9048
Listed By:
Derek Sobieraj
(312) 380-9048
Source:
Gia-sells
Added: Mar 19
Changed: Aug 23
Last Checked: Aug 23 at 6:41AM
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 Sobiko Brokerage Services, LLC
Investment Insights
Based on property information with market context.
This mixed-use building is located along North Avenue in East Humboldt Park, a rapidly evolving corridor with convenient access to public transportation. The property features a recently gut-renovated commercial space with a column-free layout, suitable for various retail, office, or service uses. The existing B3-2 zoning allows for the potential conversion of two additional ground-floor dwelling units with a special use permit, without requiring a zoning change. The current apartment rents are below market, presenting an opportunity for future income growth.
Key Highlights
- Gut‑renovated commercial space with column‑free layout, suitable for various uses.
- B3‑2 zoning allows potential conversion of two ground‑floor units with a special use permit.
- Below‑market apartment rents offer opportunity for future income growth.
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
$145,125
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
9.07%
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%
$2,902,500
$2.9M
Cap Rate 7%
$2,073,214
$2.1M
Cap Rate 9%
$1,612,500
$1.6M
Market Conditions
NOI Build-Up for 8,600 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
$258.0K $30.00/SF
− Vacancy
−$25.8K −$3.00/SF
EGI
$232.2K $27.00/SF
− OpEx
−$87.1K −$10.13/SF
NOI
$145.1K $16.88/SF
Area
Chicago, IL
Vacancy
10.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$2,902,500
Cap Rate 7%
$2,073,214
Cap Rate 9%
$1,612,500
Alternative Uses
Best Use
Mixed Use
$2.07M
$1.81M – $2.42M
NOI $145,125 @ 7.0% cap · market cap 9.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.05M
$3.55M – $4.73M
NOI $283,841 @ 7.0% cap · market cap 17.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,049
Businesses Nearby
Explore this area
Business Placement
Demographics for 60647, IL
85,631
Population
41,975
Households
2
Avg Household Size
33
Median Age
61%
College-Educated
92%
High-School Grad
4.0 sq mi
ZIP Area
21,408
Density / Sq Mi
$102,851
Median Household Income
$65,776
Median Earnings
$1,714
Median Rent
$557,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use building with value-add potential in evolving corridor.
Where is this mixed-use property located?
The property is located at 2712 W North Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Gut‑renovated commercial space with column‑free layout, suitable for various uses.; B3‑2 zoning allows potential conversion of two ground‑floor units with a special use permit.; Below‑market apartment rents offer opportunity for future income growth.
