Narragansett Avenue Commercial
For Sale
$1,000,000
2958 N Narragansett Avenue, Chicago, IL 60634
Commercial property with auto repair building on a corner lot.
Property Size2,500 SF
Lot Size0.26 Acres
Price / SF$400
Days on Market255
Property Features for 2958 N Narragansett Avenue
General Information
Standard status
Active
Size
2,500 SF
Lot size
0.26 Acres
Property subtype
Land or Vacant Lot
Taxes and HOA fees
Annual Taxes
$18,301
Amenities
Concrete
Listing Agency:
ALLURE REAL ESTATE
(312) 772-2820
Listed By:
ADAM LENCHNER · License #471019943
Source:
Corcoran
Added: Dec 10, 2025
Changed: Aug 21
Last Checked: Aug 22 at 6:48AM
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.
Located in Chicago's Montclare neighborhood, the property at 2958 N Narragansett Ave is a commercial asset situated on a corner, signalized site. The rectangular parcel spans 11,250 square feet (90 X 125) and features a one-story, 2,500-square-foot masonry and frame building constructed in 1942. The building is currently maintained in average overall condition. The property's highest and best use is its continued operation as a commercial development. The structure includes 16-foot clear ceilings in the shop area, two large overhead doors, dedicated small office space with separate climate control, and a fully fenced yard. Access is available from Narragansett, Wellington Avenue, and a rear alley with multiple curb cuts. Normal utilities, including sewer, water, gas, and electricity, are available. The commercial parcel offers an immediate land assembly opportunity with the adjacent residential income property at 2948 N Narragansett Ave, which is separately available for purchase. Consolidating both adjacent parcels creates a contiguous site totaling approximately 15,000+ square feet of land, offering estimated overall combined dimensions of 120 feet of frontage on Narragansett by 125 feet deep. The neighboring 2948 N Narragansett property is a complementary two-unit residential multi-family building totaling 2,837 square feet of gross building area, featuring recent updates and would generate an estimated $3,100 gross monthly market rent from its two units (a 1-bedroom garden unit and a 3-bedroom duplexed unit). This combined offering presents potential for an integrated commercial operation, expansion, or ground-up redevelopment.
Key Highlights
- High‑visibility corner location on Narragansett Avenue.
- Land assembly opportunity with adjacent residential property for a combined 15,000+ sq ft site.
- Turn‑key commercial structure with 16‑foot clear ceilings, two overhead doors, and a fenced yard, ideal for motor vehicle users.
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
$34,700
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
3.47%
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%
$694,000
$694.0K
Cap Rate 7%
$495,714
$495.7K
Cap Rate 9%
$385,556
$385.6K
Market Conditions
NOI Build-Up for 2,500 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
$54.0K $21.60/SF
− Vacancy
−$4.4K −$1.77/SF
EGI
$49.6K $19.83/SF
− OpEx
−$14.9K −$5.95/SF
NOI
$34.7K $13.88/SF
Area
ZIP 60634
Vacancy
8.20%
Lease Rate
$21.60 /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%
$694,000
Cap Rate 7%
$495,714
Cap Rate 9%
$385,556
Alternative Uses
Best Use
Retail
$495.7K
$433.8K – $578.3K
NOI $34,700 @ 7.0% cap · market cap 3.47%
Second Best
Industrial
$153.7K
$134.5K – $179.4K
NOI $10,762 @ 7.0% cap · market cap 1.08%
Theoretical Best
Office A
$681.7K
$596.5K – $795.3K
NOI $47,719 @ 7.0% cap · market cap 4.77%
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
434k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 27%
Superstores 27%
Dining 17%
Apparel 15%
Target
Superstores
116,293 visits/mo
0.3 miles
Marshalls
Apparel
50,047 visits/mo
0.5 miles
Five Below
Shops & Services
44,482 visits/mo
0.2 miles
Lowe's
Home Improvements & Furnishings
31,549 visits/mo
0.5 miles
Wendy's
Dining
22,127 visits/mo
0.2 miles
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 Retail in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Commercial property with auto repair building on a corner lot.
Where is this auto shop located?
The property is located at 2958 N Narragansett Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: High‑visibility corner location on Narragansett Avenue.; Land assembly opportunity with adjacent residential property for a combined 15,000+ sq ft site.; Turn‑key commercial structure with **16‑foot clear ceilings, two overhead doors, and a fenced yard**, ideal for motor vehicle users.
