Mixed-Use Building with Oversized
For Sale
$749,000
2923 West Diversey Avenue, Chicago, IL 60647
Restaurant space and an updated apartment occupy separate levels within this versatile commercial property.
Property Size2,832 SF
Price / SF$264.48
Days on Market173
Property Features for 2923 West Diversey Avenue
General Information
Standard status
Active
Size
2,832 SF
Zoning
COMMR
Net Operating Income
$50,439
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$12,916
Building Details
Year Built
1907
Buildings
1
Stories
2
Listing Agency:
Coldwell Banker Realty
(773) 671-4434
Listed By:
Laura Herlo · License #475166356
(773) 671-4434
Source:
Compass
Added: Mar 14
Changed: Aug 30
Last Checked: Aug 31 at 9:43PM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
Built in 1907, this 2,832-square-foot mixed-use property combines a restaurant on the ground level with an updated two-bedroom, one-bath apartment above. The residence includes large bedrooms, a walk-in closet, in-unit laundry, a skylight, and a finished enclosed back porch. A tall-door garage accommodates cargo vans and provides additional workspace or storage. The restaurant is operating under a lease scheduled to end in August 2026.
Recent work includes aluminum siding, plumbing updates, and a roof completed three years ago. Apartment appliances were replaced and central air was installed four years ago; the hot water tank was replaced five years ago. The property is zoned COMMR and located at 2923 West Diversey Avenue in Chicago’s Logan Square, with access to major expressways and downtown Chicago.
Recent work includes aluminum siding, plumbing updates, and a roof completed three years ago. Apartment appliances were replaced and central air was installed four years ago; the hot water tank was replaced five years ago. The property is zoned COMMR and located at 2923 West Diversey Avenue in Chicago’s Logan Square, with access to major expressways and downtown Chicago.
Key Highlights
- 2,832 SF mixed‑use property built in 1907
- Ground‑floor restaurant lease scheduled to end August 2026
- Updated two‑bedroom, one‑bath apartment with in‑unit laundry
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
$52,709
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
7.04%
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%
$1,054,180
$1.1M
Cap Rate 7%
$752,986
$753.0K
Cap Rate 9%
$585,656
$585.7K
Market Conditions
NOI Build-Up for 2,832 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
$74.8K $26.40/SF
− Vacancy
−$4.5K −$1.58/SF
EGI
$70.3K $24.82/SF
− OpEx
−$17.6K −$6.20/SF
NOI
$52.7K $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%
$1,054,180
Cap Rate 7%
$752,986
Cap Rate 9%
$585,656
Alternative Uses
Best Use
Specialty Retail
$753.0K
$658.9K – $878.5K
NOI $52,709 @ 7.0% cap · market cap 7.04%
Second Best
Mixed Use
$682.7K
$597.4K – $796.5K
NOI $47,790 @ 7.0% cap · market cap 6.38%
Theoretical Best
Office A
$1.34M
$1.17M – $1.56M
NOI $93,470 @ 7.0% cap · market cap 12.48%
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
2,709
Businesses Nearby
120k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 79%
Shops & Services 16%
Electronics 3%
Home Improvements & Furnishings 2%
McDonald's
Dining
33,587 visits/mo
0.4 miles
Popeyes Louisiana Kitchen
Dining
24,987 visits/mo
0.2 miles
IHOP
Dining
16,091 visits/mo
0.2 miles
Starbucks
Dining
9,009 visits/mo
0.3 miles
BP
Shops & Services
7,922 visits/mo
0.5 miles
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
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 - Restaurant space and an updated apartment occupy separate levels within this versatile commercial property.
Where is this mixed-use property located?
The property is located at 2923 West Diversey Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 2,832 SF mixed‑use property built in 1907; Ground‑floor restaurant lease scheduled to end August 2026; Updated two‑bedroom, one‑bath apartment with in‑unit laundry
