Mixed-Use Building with Retail
For Sale
$1,429,000
3034 W Montrose Avenue, Chicago, IL 60618
Corner commercial property combines multiple storefronts with two upper-level residential units.
Property Size6,500 SF
Price / SF$219.85
Days on Market49
Property Features for 3034 W Montrose Avenue
General Information
Standard status
Active
Size
6,500 SF
Property subtype
Commercial
Zoning
COMMR
Taxes and HOA fees
Annual Taxes
$20,079
Building Details
Building Size
6,500 SF
Year Built
1921
Stories
2
Units
7
Listing Agency:
Century 21 Circle
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(773) 465-4200
Source:
Gia-sells
Added: Jul 14
Changed: Aug 29
Last Checked: Aug 30 at 5:39PM
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 Century 21 Circle
Investment Insights
Based on property information with market context.
This mixed-use building contains approximately 6,500 square feet on a roughly 7,500-square-foot parcel. The existing configuration includes five commercial storefronts occupied by three different tenants or users, along with two second-floor residential units. Each apartment has two bedrooms and one bathroom. One commercial space is currently vacant, creating a combination of existing occupancy and available retail space.
The property occupies a signalized corner at Montrose Avenue and Whipple Avenue, just east of Kedzie Avenue, with pedestrian and retail activity along the corridor. Nearby businesses include Walgreens, Starbucks, Dunkin’ Donuts, restaurants, and shops. Rear gated parking provides 15 spaces, while public transportation and major roads are within the surrounding area. The property was built in 1921 and includes improvements completed in 2024.
The property occupies a signalized corner at Montrose Avenue and Whipple Avenue, just east of Kedzie Avenue, with pedestrian and retail activity along the corridor. Nearby businesses include Walgreens, Starbucks, Dunkin’ Donuts, restaurants, and shops. Rear gated parking provides 15 spaces, while public transportation and major roads are within the surrounding area. The property was built in 1921 and includes improvements completed in 2024.
Key Highlights
- Approximately 6,500 SF mixed‑use building on approximately 7,500 SF of land
- Five commercial stores leased to 3 different tenants or users
- Two 2‑bedroom, 1‑bath residential units on the 2nd level
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
$109,688
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
7.68%
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%
$2,193,760
$2.2M
Cap Rate 7%
$1,566,971
$1.6M
Cap Rate 9%
$1,218,756
$1.2M
Market Conditions
NOI Build-Up for 6,500 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
$195.0K $30.00/SF
− Vacancy
−$19.5K −$3.00/SF
EGI
$175.5K $27.00/SF
− OpEx
−$65.8K −$10.13/SF
NOI
$109.7K $16.88/SF
Area
ZIP 60618
Vacancy
10.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$2,193,760
Cap Rate 7%
$1,566,971
Cap Rate 9%
$1,218,756
Alternative Uses
Best Use
Mixed Use
$1.57M
$1.37M – $1.83M
NOI $109,688 @ 7.0% cap · market cap 7.68%
Second Best
Apartment 5plus
$1.35M
$1.18M – $1.57M
NOI $94,159 @ 7.0% cap · market cap 6.59%
Theoretical Best
Office A
$2.84M
$2.48M – $3.31M
NOI $198,799 @ 7.0% cap · market cap 13.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,479
Businesses Nearby
Explore this area
Business Placement
Demographics for 60618, IL
90,316
Population
41,053
Households
2.2
Avg Household Size
35
Median Age
55%
College-Educated
89%
High-School Grad
5.0 sq mi
ZIP Area
18,063
Density / Sq Mi
$101,558
Median Household Income
$60,263
Median Earnings
$1,534
Median Rent
$538,300
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 - Corner commercial property combines multiple storefronts with two upper-level residential units.
Where is this mixed-use property located?
The property is located at 3034 W Montrose Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,429,000.
What are key features of this property?
This property features: Approximately 6,500 SF mixed‑use building on approximately 7,500 SF of land; Five commercial stores leased to 3 different tenants or users; Two 2‑bedroom, 1‑bath residential units on the 2nd level
