Chicago Portfolio: Tow Yard and
For Sale
$3,500,000
2948-2958 N Narragansett Avenue, Chicago, IL 60634
Operating tow yard, income property, and industrial yard for sale.
Property Size8,525 SF
Lot Size1.18 Acres
Price / SF$410.56
Days on Market222
Property Features for 2948-2958 N Narragansett Avenue
General Information
Standard status
Active
Size
8,525 SF
Lot size
1.18 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$18,859
Amenities
Central air
Central Air Cooling
Rubber Roof
Listing Agency:
ALLURE REAL ESTATE
(312) 772-2820
Listed By:
CECIL SABU · License #471019943
Source:
Corcoran
Added: Jan 12
Changed: Aug 20
Last Checked: Aug 21 at 9:21AM
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 presents a rare opportunity to acquire an operating tow yard business along with a multi-site Chicago real estate portfolio, encompassing three distinct properties. The portfolio includes a commercial site and adjacent income-producing two-flat located at 2958 N Narragansett Ave and 2948 N Narragansett Ave in Montclare, as well as an industrial yard at 11629 S Green St in West Pullman. The Montclare commercial parcel, situated on a signalized, high-traffic corner, totals approximately 11,250 square feet and features an approximately 2,500-square-foot one-story masonry/frame building suitable for automotive or heavy commercial use. It boasts 16-foot clear ceiling heights, two oversized drive-in doors, a climate-controlled office, a fully fenced yard, and multiple access points, along with full utilities. The adjacent two-flat building features two units: a 3-bedroom duplex and a 1-bedroom garden unit, generating an estimated $3,100 per month in gross market rent. Premium finishes include granite/marble surfaces, heated bathroom floors, luxury shower features, central A/C, hot water baseboard heat, tankless water heater, deck space, and a detached 2-car garage. The combined Narragansett parcels provide approximately 15,000+ square feet with 120 feet of frontage, corner visibility, and redevelopment/expansion potential. The West Pullman industrial yard, zoned M2-1 Light Industry, includes an approximately 8,525-square-foot one-story masonry industrial building on a 51,563-square-foot fenced site, ideal for secure storage or parking. Improvements include approximately 18-foot clear ceilings, two overhead doors, ceiling-hung heat, and an office area with gas forced air and central A/C, plus a kitchen and two bathrooms. Utilities are available, and the site is located in FEMA Zone X. Excellent regional access is provided via I-57 and nearby Halsted routes. This portfolio is ideal for owner-users or investors seeking business and real estate, income, and industrial/commercial flexibility.
Key Highlights
- Operating tow yard business and multi‑site Chicago real estate portfolio with appraised value of $3,500,000.
- High‑visibility commercial corner location** on Narragansett Avenue with approximately 11,250 SF parcel, featuring a 2,500 SF building.
- Income‑producing, fully renovated two‑flat building generating an estimated $3,100/month gross market rent.
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
$140,606
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
4.02%
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%
$2,812,120
$2.8M
Cap Rate 7%
$2,008,657
$2.0M
Cap Rate 9%
$1,562,289
$1.6M
Market Conditions
NOI Build-Up for 8,525 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
$214.8K $25.20/SF
− Vacancy
−$14.0K −$1.64/SF
EGI
$200.9K $23.56/SF
− OpEx
−$60.3K −$7.07/SF
NOI
$140.6K $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%
$2,812,120
Cap Rate 7%
$2,008,657
Cap Rate 9%
$1,562,289
Alternative Uses
Best Use
Multifamily LT 5
$2.01M
$1.76M – $2.34M
NOI $140,606 @ 7.0% cap · market cap 4.02%
Second Best
Apartment 5plus
$1.86M
$1.62M – $2.16M
NOI $129,854 @ 7.0% cap · market cap 3.71%
Theoretical Best
Office A
$2.32M
$2.03M – $2.71M
NOI $162,721 @ 7.0% cap · market cap 4.65%
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?
Truck stop - Operating tow yard, income property, and industrial yard for sale.
Where is this truck stop 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 $3,500,000.
What are key features of this property?
This property features: Operating tow yard business and multi‑site Chicago real estate portfolio with appraised value of $3,500,000.; High‑visibility commercial corner location** on Narragansett Avenue with approximately 11,250 SF parcel, featuring a 2,500 SF building.; Income‑producing, fully renovated two‑flat building generating an estimated $3,100/month gross market rent.
