Turnkey Mixed-Use Income
For Sale
$1,370,900
3222-3224 S Morgan Street, Chicago, IL 60608
Turnkey 9-unit mixed-use building with separately metered apartments and two retail storefronts.
Property Size6,660 SF
Price / SF$205.84
Days on Market164
Property Features for 3222-3224 S Morgan Street
General Information
Standard status
Active
Size
6,660 SF
Property subtype
Mixed Use
Additional Details
Highway Access
Yes
Multifamily Units
7
Taxes and HOA fees
Annual Taxes
$19,086
Amenities
Central Air
3
Building Details
Year Built
1891
Tenancy
Multi
Listing Agency:
Avenue 1 Realty Group
(312) 719-9090
Listed By:
Ronald Ohr · License #471020729
(312) 719-9090
Source:
Xome
Added: Mar 13
Changed: Aug 23
Last Checked: Jul 24 at 12:25PM
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 Avenue 1 Realty Group
Investment Insights
Based on property information with market context.
Turnkey 9-unit mixed-use property featuring three 2BD/1BA apartments, four 1BD/1BA apartments, and two retail storefronts. The 3222 storefront and one 1R unit are currently combined and leased to a single tenant, and can be converted back to separate spaces. Each unit is separately metered for gas and electric, with heating supplied by a mix of furnaces and Williams heaters; commercial units and 2F have furnaces with A/C condensers.
The property includes major recent improvements, including a full gut rehab of Unit 2F with new plumbing, electrical, and HVAC, along with storefront cosmetic updates in 2024. Additional work includes two new furnaces (2024), new water heaters, copper plumbing in select areas, electrical upgrades, and a new basement coin laundry with two washers and two dryers.
Off I-55 and I-90/94, the building is located minutes from Downtown, with walking access to Guaranteed Rate Field and public transit. Existing rear access includes a gate, and the seller notes that a parking pad could be added to create additional parking revenue.
The property includes major recent improvements, including a full gut rehab of Unit 2F with new plumbing, electrical, and HVAC, along with storefront cosmetic updates in 2024. Additional work includes two new furnaces (2024), new water heaters, copper plumbing in select areas, electrical upgrades, and a new basement coin laundry with two washers and two dryers.
Off I-55 and I-90/94, the building is located minutes from Downtown, with walking access to Guaranteed Rate Field and public transit. Existing rear access includes a gate, and the seller notes that a parking pad could be added to create additional parking revenue.
Key Highlights
- 9‑unit mixed‑use building (1891) with three 2BD/1BA apartments, four 1BD/1BA apartments, and two retail storefronts
- 3222 storefront and 1R unit are currently combined and leased to one tenant; can be converted back to separate spaces
- Apartments and commercial units are separately metered for gas and electric; heating includes a mix of furnaces and Williams heaters
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
$102,092
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
7.45%
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%
$2,041,840
$2.0M
Cap Rate 7%
$1,458,457
$1.5M
Cap Rate 9%
$1,134,356
$1.1M
Market Conditions
NOI Build-Up for 6,660 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
$195.8K $29.40/SF
− Vacancy
−$10.2K −$1.53/SF
EGI
$185.6K $27.87/SF
− OpEx
−$83.5K −$12.54/SF
NOI
$102.1K $15.33/SF
Area
Chicago, IL
Vacancy
5.20%
Lease Rate
$29.40 /SF/Yr
Expense Ratio
45.00%
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%
$2,041,840
Cap Rate 7%
$1,458,457
Cap Rate 9%
$1,134,356
Alternative Uses
Best Use
Apartment 5plus
$1.46M
$1.28M – $1.70M
NOI $102,092 @ 7.0% cap · market cap 7.45%
Second Best
Retail
$1.32M
$1.15M – $1.54M
NOI $92,140 @ 7.0% cap · market cap 6.72%
Theoretical Best
Office A
$3.14M
$2.75M – $3.66M
NOI $219,812 @ 7.0% cap · market cap 16.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,670
Businesses Nearby
Explore this area
Business Placement
Demographics for 60608, IL
75,770
Population
32,617
Households
2.3
Avg Household Size
34
Median Age
34%
College-Educated
77%
High-School Grad
6.2 sq mi
ZIP Area
12,221
Density / Sq Mi
$70,704
Median Household Income
$42,211
Median Earnings
$1,208
Median Rent
$341,500
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?
Apartment building - Turnkey 9-unit mixed-use building with separately metered apartments and two retail storefronts.
Where is this apartment building located?
The property is located at 3222-3224 S Morgan Street Chicago, IL.
What is the asking price?
The asking price for this property is $1,370,900.
What are key features of this property?
This property features: 9‑unit mixed‑use building (1891) with three 2BD/1BA apartments, four 1BD/1BA apartments, and two retail storefronts; 3222 storefront and 1R unit are currently combined and leased to one tenant; can be converted back to separate spaces; Apartments and commercial units are separately metered for gas and electric; heating includes a mix of furnaces and Williams heaters
