Approved Mixed-Use Development
For Sale
$650,000
3508 West Armitage Avenue, Chicago, IL 60647
Plans and permits support five residential units alongside ground-floor retail space.
Property Size2,875 SF
Lot Size0.07 Acres
Price / SF$226.09
Days on Market201
Property Features for 3508 West Armitage Avenue
General Information
Standard status
Active
Size
2,875 SF
Total Parking Spaces
3
Lot size
0.07 Acres
Zoning
B2-3
Site & Location
Road Access
Yes
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$5,811
Building Details
Year Built
1891
Stories
2
Listing Agency:
33 Realty
(847) 226-7860
Listed By:
Aaron Giles · License #475175759
(847) 226-7860
Source:
Compass
Added: Feb 10
Changed: Aug 30
Last Checked: Aug 30 at 2:20AM
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 33 Realty
Investment Insights
Based on property information with market context.
Located at 3508 West Armitage Avenue in Chicago, this mixed-use development property includes approved plans and permits for a six-unit project. The proposed program combines five residential units with one ground-floor retail space, with each apartment designed as a two-bedroom, two-bath layout.
The planned improvements include a full basement with 7.5-8' ceilings and three parking spaces. Foundation and plumbing work have already been completed, and architectural plans are in hand. The property is zoned B2-3 on a 25' x 125' lot and is situated near the 606, Blue Line access, restaurants, and retail. The existing property dates to 1891.
The planned improvements include a full basement with 7.5-8' ceilings and three parking spaces. Foundation and plumbing work have already been completed, and architectural plans are in hand. The property is zoned B2-3 on a 25' x 125' lot and is situated near the 606, Blue Line access, restaurants, and retail. The existing property dates to 1891.
Key Highlights
- Approved plans and permits for five residential units plus one ground‑floor retail space
- All five residential layouts are planned as 2 bed / 2 bath units
- Full basement with 7.5‑8' ceilings
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
$48,516
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
7.46%
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%
$970,320
$970.3K
Cap Rate 7%
$693,086
$693.1K
Cap Rate 9%
$539,067
$539.1K
Market Conditions
NOI Build-Up for 2,875 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
$86.3K $30.00/SF
− Vacancy
−$8.6K −$3.00/SF
EGI
$77.6K $27.00/SF
− OpEx
−$29.1K −$10.13/SF
NOI
$48.5K $16.88/SF
Area
Chicago, IL
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%
$970,320
Cap Rate 7%
$693,086
Cap Rate 9%
$539,067
Alternative Uses
Best Use
Mixed Use
$693.1K
$606.5K – $808.6K
NOI $48,516 @ 7.0% cap · market cap 7.46%
Second Best
Apartment 5plus
$629.6K
$550.9K – $734.5K
NOI $44,071 @ 7.0% cap · market cap 6.78%
Theoretical Best
Office A
$1.36M
$1.19M – $1.58M
NOI $94,889 @ 7.0% cap · market cap 14.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,128
Businesses Nearby
Explore this area
Business Placement
Demographics for 60647, IL
85,631
Population
41,975
Households
2
Avg Household Size
33
Median Age
61%
College-Educated
92%
High-School Grad
4.0 sq mi
ZIP Area
21,408
Density / Sq Mi
$102,851
Median Household Income
$65,776
Median Earnings
$1,714
Median Rent
$557,300
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 - Plans and permits support five residential units alongside ground-floor retail space.
Where is this mixed-use property located?
The property is located at 3508 West Armitage 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: Approved plans and permits for five residential units plus one ground‑floor retail space; All five residential layouts are planned as 2 bed / 2 bath units; Full basement with 7.5‑8' ceilings
