Mixed-Use Building with Restaurant
New
For Sale
$650,000
3248 N LINCOLN Avenue, Chicago, IL 60657
Brick property combines a leased commercial area with an upstairs apartment and unfinished basement.
Property Size3,050 SF
Days on Market3
Property Features for 3248 N LINCOLN Avenue
General Information
Standard status
Active
Size
3,050 SF
Property subtype
Commercial
Zoning
COMMR
Additional Details
Floor
Ground
Taxes and HOA fees
Annual Taxes
$14,669
Building Details
Building Size
3,050 SF
Year Built
1931
Stories
2
Units
2
Construction
brick
Tenancy
Multi
Listing Agency:
Jameson Sotheby's Intl Realty
(312) 751-0300
Listed By:
Robert Munds · License #475131063
(312) 751-0300
Source:
Ozmentrealestate
Added: Aug 11
Changed: Aug 12
Last Checked: Aug 12 at 4:23AM
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 Jameson Sotheby's Intl Realty
Investment Insights
Based on property information with market context.
Constructed in 1931, this brick mixed-use building includes a restaurant area on the first floor and a residential apartment above. The commercial space is leased through October 2027. The upper-level unit has 2 bedrooms, 1 bath, an updated kitchen and bathroom, a generous living room, and a separate dining room. The residence is occupied under a month-to-month tenancy.
The property is located on N Lincoln Avenue in Chicago’s Lakeview area and includes an unfinished basement. The sale must include 1630 W. Melrose, and the building is offered in as-is condition.
The property is located on N Lincoln Avenue in Chicago’s Lakeview area and includes an unfinished basement. The sale must include 1630 W. Melrose, and the building is offered in as-is condition.
Key Highlights
- Ground‑floor restaurant space leased through October 2027
- Second‑floor apartment with 2 bedrooms and 1 bath
- Updated apartment kitchen and bathroom
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
$56,767
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
8.73%
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%
$1,135,340
$1.1M
Cap Rate 7%
$810,957
$811.0K
Cap Rate 9%
$630,744
$630.7K
Market Conditions
NOI Build-Up for 3,050 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
$80.5K $26.40/SF
− Vacancy
−$4.8K −$1.58/SF
EGI
$75.7K $24.82/SF
− OpEx
−$18.9K −$6.20/SF
NOI
$56.8K $18.61/SF
Area
Chicago, IL
Vacancy
6.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
25.00%
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%
$1,135,340
Cap Rate 7%
$810,957
Cap Rate 9%
$630,744
Alternative Uses
Best Use
Specialty Retail
$811.0K
$709.6K – $946.1K
NOI $56,767 @ 7.0% cap · market cap 8.73%
Second Best
Mixed Use
$735.3K
$643.4K – $857.8K
NOI $51,469 @ 7.0% cap · market cap 7.92%
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,665 @ 7.0% cap · market cap 15.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,158
Businesses Nearby
303k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 40%
Shops & Services 20%
Dining 11%
Superstores 11%
Whole Foods Market
Groceries
64,387 visits/mo
0.1 miles
Jewel-Osco
Groceries
55,541 visits/mo
0.4 miles
Target
Superstores
32,877 visits/mo
0.1 miles
Shell
Shops & Services
15,013 visits/mo
0.4 miles
Anthropologie
Apparel
14,685 visits/mo
0.4 miles
Demographics for 60657, IL
72,316
Population
42,246
Households
1.7
Avg Household Size
32
Median Age
87%
College-Educated
99%
High-School Grad
2.2 sq mi
ZIP Area
32,871
Density / Sq Mi
$109,025
Median Household Income
$77,731
Median Earnings
$1,839
Median Rent
$534,500
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Brick property combines a leased commercial area with an upstairs apartment and unfinished basement.
Where is this mixed-use property located?
The property is located at 3248 N LINCOLN Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Ground‑floor restaurant space leased through October 2027; Second‑floor apartment with 2 bedrooms and 1 bath; Updated apartment kitchen and bathroom
