Montclare Dual-Parcel Redevelopment
For Sale
$1,500,000
2948-2958 N Narragansett Avenue, Chicago, IL 60634
Two-unit residential property and commercial site in Chicago's Montclare neighborhood.
Property Size2,837 SF
Lot Size0.35 Acres
Price / SF$528.73
Days on Market254
Property Features for 2948-2958 N Narragansett Avenue
General Information
Standard status
Active
Size
2,837 SF
Lot size
0.35 Acres
Property subtype
Land or Vacant Lot
Taxes and HOA fees
Annual Taxes
$24,071
Amenities
Central air
Detached Garage
Garage
Central Air Cooling
Natural Gas Heating
Listing Agency:
ALLURE REAL ESTATE
(312) 772-2820
Listed By:
CECIL SABU · License #471019943
Source:
Corcoran
Added: Dec 11, 2025
Changed: Aug 21
Last Checked: Aug 21 at 8:11AM
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 ALLURE REAL ESTATE
Investment Insights
Based on property information with market context.
This offering features a dual-parcel opportunity in Chicago's Montclare neighborhood, combining a renovated two-unit residential income property with a high-visibility corner commercial site. Together, the parcels create a land assemblage of approximately 15,000+ square feet with 120 feet of frontage on Narragansett Avenue. The residential income property, originally constructed in 1920, offers 2,837 square feet of gross building area. Extensive renovations have resulted in a low effective age of approximately 20 years. Updates include newer kitchens, baths, flooring, paint, and fixtures. It features a 6-room, 3-bedroom duplex unit and a 4-room, 1-bedroom garden unit, generating an estimated $3,100 in gross monthly market rent, including water and sewer. The main duplex showcases exotic rare granite kitchen countertops, marble flooring in the kitchen, dining area, and bathroom, marble bathroom tile with heated floors, a separate cooktop, oven, warming drawer, dishwasher, and garbage compactor. The lower level includes marble countertops and full marble bathroom finishes, a luxury walk-in shower with six body sprays, and heated bathroom floors with an overhead heat lamp. Additional features include central air conditioning, hot water baseboard heating, a tankless water heater, detached two-car garage, and outdoor deck space. The adjacent 11,250 square foot rectangular commercial parcel sits on a signalized, high-traffic corner directly on Narragansett Avenue. Improved with a 2,500 square foot one-story masonry and frame commercial building, originally constructed in 1942 and maintained in average condition, the property is currently configured for automotive or heavy commercial use. The commercial structure features 16-foot clear ceiling heights in the shop, two large overhead drive-in doors, dedicated, climate-controlled office space, a fully fenced yard, multiple points of ingress and egress from Narragansett, Wellington Avenue, and the rear alley, and full utility access including water, sewer, gas, and electric. Together, these two parcels form a contiguous 15K+ square foot development site with frontage, alley access, and corner visibility, supporting commercial expansion, an integrated commercial-residential operation, mixed-use redevelopment, or full ground-up redevelopment. This offering combines immediate cash-flow, commercial functionality, and long-term redevelopment optionality in one of Montclare's most visible commercial corridors.
Key Highlights
- Rare dual‑parcel assemblage totaling 15,000+ sq ft with 120 ft frontage on Narragansett Avenue, offering significant redevelopment potential.
- Turn‑key residential income property generating $3,100 gross monthly rent.
- High‑visibility corner commercial parcel suitable for automotive/heavy commercial use.
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
$46,792
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
3.12%
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%
$935,840
$935.8K
Cap Rate 7%
$668,457
$668.5K
Cap Rate 9%
$519,911
$519.9K
Market Conditions
NOI Build-Up for 2,837 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
$71.5K $25.20/SF
− Vacancy
−$4.6K −$1.64/SF
EGI
$66.8K $23.56/SF
− OpEx
−$20.1K −$7.07/SF
NOI
$46.8K $16.49/SF
Area
ZIP 60634
Vacancy
6.50%
Lease Rate
$25.20 /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%
$935,840
Cap Rate 7%
$668,457
Cap Rate 9%
$519,911
Alternative Uses
Best Use
Multifamily LT 5
$668.5K
$584.9K – $779.9K
NOI $46,792 @ 7.0% cap · market cap 3.12%
Second Best
Mixed Use
$618.6K
$541.3K – $721.7K
NOI $43,300 @ 7.0% cap · market cap 2.89%
Theoretical Best
Office A
$773.6K
$676.9K – $902.5K
NOI $54,151 @ 7.0% cap · market cap 3.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,104
Businesses Nearby
Explore this area
Business Placement
Demographics for 60634, IL
75,694
Population
29,344
Households
2.6
Avg Household Size
41
Median Age
27%
College-Educated
87%
High-School Grad
7.1 sq mi
ZIP Area
10,661
Density / Sq Mi
$84,997
Median Household Income
$46,694
Median Earnings
$1,271
Median Rent
$333,900
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 - Two-unit residential property and commercial site in Chicago's Montclare neighborhood.
Where is this mixed-use property located?
The property is located at 2948-2958 N Narragansett Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Rare dual‑parcel assemblage totaling 15,000+ sq ft with 120 ft frontage on Narragansett Avenue, offering significant redevelopment potential.; Turn‑key residential income property generating $3,100 gross monthly rent.; High‑visibility corner commercial parcel suitable for automotive/heavy commercial use.
