Mixed-Use Building with
For Sale
$580,000
2724 W 51st St, Chicago, IL 60632
Commercial space at street level is combined with two upper-floor residential units under B3-1 zoning.
Property Size4,368 SF
Price / SF$132.78
Days on Market9
Property Features for 2724 W 51st St
General Information
Standard status
Active
Size
4,368 SF
Property subtype
Commercial
Zoning
B3-1
Additional Details
Floor
Ground
Public Transit
Yes
Multifamily Units
2
Building Details
Year Built
1965
Listing Agency:
Realty of America, LLC
Listed By:
Alexander Partida · License #475149866
Source:
Searchillinoishomesforsale
Added: Aug 22
Changed: Aug 30
Last Checked: Aug 30 at 9:57AM
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 Realty of America, LLC
Investment Insights
Based on property information with market context.
This mixed-use property contains 4,368 square feet across a street-facing commercial area and two residential units positioned above. The ground-floor space supports several potential commercial formats identified in the property information, including storefront retail, professional office, neighborhood services, and medical use. Two apartments provide the building’s residential component and complement the commercial occupancy configuration.
Built in 1965, the property sits at 2724 W 51st St in Chicago’s Gage Park neighborhood, along the 51st Street commercial corridor. Kedzie Avenue, public transit options, and neighborhood anchor businesses are located nearby. B3-1 Community Shopping District zoning supports the stated mix of commercial and residential functions.
Built in 1965, the property sits at 2724 W 51st St in Chicago’s Gage Park neighborhood, along the 51st Street commercial corridor. Kedzie Avenue, public transit options, and neighborhood anchor businesses are located nearby. B3-1 Community Shopping District zoning supports the stated mix of commercial and residential functions.
Key Highlights
- 4,368 SF mixed‑use property built in 1965
- Ground‑floor commercial space with two residential units above
- B3‑1 Community Shopping District zoning
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
$47,001
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
8.10%
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%
$940,020
$940.0K
Cap Rate 7%
$671,443
$671.4K
Cap Rate 9%
$522,233
$522.2K
Market Conditions
NOI Build-Up for 4,368 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
$73.4K $16.80/SF
− Vacancy
−$6.2K −$1.43/SF
EGI
$67.1K $15.37/SF
− OpEx
−$20.1K −$4.61/SF
NOI
$47.0K $10.76/SF
Area
ZIP 60632
Vacancy
8.50%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
30.00%
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%
$940,020
Cap Rate 7%
$671,443
Cap Rate 9%
$522,233
Alternative Uses
Best Use
Mixed Use
$1.03M
$900.9K – $1.20M
NOI $72,072 @ 7.0% cap · market cap 12.43%
Second Best
Apartment 5plus
$814.7K
$712.9K – $950.5K
NOI $57,029 @ 7.0% cap · market cap 9.83%
Theoretical Best
Office A
$1.92M
$1.68M – $2.24M
NOI $134,554 @ 7.0% cap · market cap 23.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
779
Businesses Nearby
Explore this area
Business Placement
Demographics for 60632, IL
92,237
Population
28,860
Households
3.2
Avg Household Size
33
Median Age
13%
College-Educated
69%
High-School Grad
7.4 sq mi
ZIP Area
12,464
Density / Sq Mi
$60,576
Median Household Income
$35,203
Median Earnings
$1,057
Median Rent
$240,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial space at street level is combined with two upper-floor residential units under B3-1 zoning.
Where is this mixed-use property located?
The property is located at 2724 W 51st St Chicago, IL.
What is the asking price?
The asking price for this property is $580,000.
What are key features of this property?
This property features: 4,368 SF mixed‑use property built in 1965; Ground‑floor commercial space with two residential units above; B3‑1 Community Shopping District zoning
