Established Auto Repair Business
For Sale
$699,900
2908 W Cermak Road, Chicago, IL 60623
Turnkey auto repair business with real estate in Chicago.
Property Size6,600 SF
Days on Market311
Property Features for 2908 W Cermak Road
General Information
Standard status
Active
Size
6,600 SF
Property subtype
Business Opportunity
Zoning
COMMR
Taxes and HOA fees
Annual Taxes
$19,557
Building Details
Building Size
6,600 SF
Stories
1
Listing Agency:
Kale Realty
(312) 939-5253
Listed By:
Sylvia Magallanes
(312) 939-5253
Source:
Exit2newbeginningz
Added: Oct 20, 2025
Changed: Aug 23
Last Checked: Aug 25 at 8:31AM
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 Kale Realty
Investment Insights
Based on property information with market context.
This property presents an opportunity to acquire an established auto repair business, including the real estate, in Chicago's Little Village area. The business has been under the same ownership for over 25 years. The sale encompasses both the real estate and the business, complete with all inventory and equipment. The property features seven service bays, each equipped with lifts, along with an alignment machine and a tire repair station suitable for both cars and large trucks. Access is facilitated by front and rear overhead doors. The property also includes an air-conditioned customer lobby and two private offices. Situated in a high-traffic area, the property benefits from outstanding visibility and consistent drive-by exposure. The location has a long-standing history as an auto repair shop, fostering community goodwill and repeat clientele. This is suitable for an owner-operator seeking a turnkey business or an investor seeking an income-producing asset in an automotive corridor.
Key Highlights
- Turnkey auto repair business opportunity including real estate, business, inventory, and equipment.
- Established business with a 25+ year operating history and strong community goodwill.
- Seven fully equipped service bays with lifts, alignment machine, and tire repair station suitable for cars and large trucks.
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
$41,388
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
5.91%
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%
$827,760
$827.8K
Cap Rate 7%
$591,257
$591.3K
Cap Rate 9%
$459,867
$459.9K
Market Conditions
NOI Build-Up for 6,600 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
$62.2K $9.43/SF
− Vacancy
−$3.1K −$0.47/SF
EGI
$59.1K $8.96/SF
− OpEx
−$17.7K −$2.69/SF
NOI
$41.4K $6.27/SF
Area
Chicago, IL
Vacancy
5.00%
Lease Rate
$9.43 /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%
$827,760
Cap Rate 7%
$591,257
Cap Rate 9%
$459,867
Alternative Uses
Best Use
Retail
$1.30M
$1.14M – $1.52M
NOI $91,310 @ 7.0% cap · market cap 13.05%
Second Best
Industrial
$591.3K
$517.4K – $689.8K
NOI $41,388 @ 7.0% cap · market cap 5.91%
Theoretical Best
Office A
$3.11M
$2.72M – $3.63M
NOI $217,832 @ 7.0% cap · market cap 31.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,786
Businesses Nearby
58k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 60%
Shops & Services 36%
Electronics 3%
BP
Shops & Services
16,196 visits/mo
0.2 miles
Church's Chicken
Dining
13,470 visits/mo
0.3 miles
Dunkin' Donuts
Dining
10,845 visits/mo
0.2 miles
Panda Express
Dining
9,349 visits/mo
0.5 miles
U.S. Bank
Shops & Services
3,754 visits/mo
0.2 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Kedzie Auto Repair — 2723 S Kedzie Ave, Chicago, IL 60623
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- AJ Window Tinting — 3439 W 26th St, Chicago, IL 60623
- AJ Electronics Chicago — 3437 W 26th St, Chicago, IL 60623
- Mandu's Auto Service — 2551 S Spaulding Ave, Chicago, IL 60623
Frequently Asked Questions
What type of property is this?
Auto shop - Turnkey auto repair business with real estate in Chicago.
Where is this auto shop located?
The property is located at 2908 W Cermak Road Chicago, IL.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Turnkey auto repair business opportunity including real estate, business, inventory, and equipment.; Established business with a 25+ year operating history and strong community goodwill.; Seven fully equipped service bays with lifts, alignment machine, and tire repair station suitable for cars and large trucks.
