Full Commissary Kitchen
For Sale
$1,600,000
3515 W Grand Ave, Chicago, IL 60651
Includes a full commissary kitchen and additional high-ceiling open space that can be leased and potentially divided.
Property Size4,800 SF
Lot Size0.51 Acres
Price / SF$333.33
Days on Market90
Property Features for 3515 W Grand Ave
General Information
Standard status
Active
Size
4,800 SF
Total Parking Spaces
28
Lot size
0.51 Acres
Property subtype
Land/Lot
Lease Type
NNN
Additional Details
Road Access
Yes
Amenities
ADA bathrooms
Building Details
Tenancy
Multi
Listing Agency:
@properties Commercial
Listed By:
Ian Feinerman · License #475124617
(312) 506-0200
Source:
Illianahomesource
Added: Jun 12
Changed: Sep 8
Last Checked: Sep 7 at 9:02AM
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 @properties Commercial
Investment Insights
Based on property information with market context.
A 7,200-square-foot commercial building on a triangular 22,400-square-foot lot offers an existing full commissary kitchen and a large, flexible area for leasing. Approximately 2,400 square feet is currently rented to a catering company and includes a full commissary kitchen with a large hood, black iron, and a walk-in cooler. The remaining 4,800 square feet is open with high ceilings and can be divided, with multiple entrances and multi-stall ADA bathrooms.
The property includes rooftop-updated HVAC units and a newer roof, plus a 28-space parking lot with entry and exit gates on Grand and Thomas Streets. Located directly next to a local park, the site is served by nearby bus stops and is about a quarter mile to the heart of Humboldt Park, with area tenants including Cermak Fresh Market, AutoZone, Fresenius Kidney Care Center, and Right Way Sign Company.
The property includes rooftop-updated HVAC units and a newer roof, plus a 28-space parking lot with entry and exit gates on Grand and Thomas Streets. Located directly next to a local park, the site is served by nearby bus stops and is about a quarter mile to the heart of Humboldt Park, with area tenants including Cermak Fresh Market, AutoZone, Fresenius Kidney Care Center, and Right Way Sign Company.
Key Highlights
- 7200 SF building on a triangular 22,400 SF lot with parking lot and 28 spaces plus entry/exit gates on Grand and Thomas Sts.
- 2,400 SF is leased to a well‑known catering company and includes a full commissary kitchen with large hood, black iron, and walk‑in cooler.
- 4,800 SF high‑ceiling wide‑open space available for lease at $20 NNN, with multiple entrances that could allow division.
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
$89,338
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
5.58%
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%
$1,786,760
$1.8M
Cap Rate 7%
$1,276,257
$1.3M
Cap Rate 9%
$992,644
$992.6K
Market Conditions
NOI Build-Up for 4,800 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
$126.7K $26.40/SF
− Vacancy
−$7.6K −$1.58/SF
EGI
$119.1K $24.82/SF
− OpEx
−$29.8K −$6.20/SF
NOI
$89.3K $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%
$1,786,760
Cap Rate 7%
$1,276,257
Cap Rate 9%
$992,644
Alternative Uses
Best Use
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,338 @ 7.0% cap · market cap 5.58%
Second Best
Industrial
$430.0K
$376.3K – $501.7K
NOI $30,101 @ 7.0% cap · market cap 1.88%
Theoretical Best
Office A
$2.26M
$1.98M – $2.64M
NOI $158,423 @ 7.0% cap · market cap 9.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,083
Businesses Nearby
113k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 31%
Dining 29%
Apparel 19%
Groceries 11%
Popeyes Louisiana Kitchen
Dining
15,239 visits/mo
0.5 miles
Five Below
Shops & Services
12,540 visits/mo
0.4 miles
Aldi
Groceries
12,149 visits/mo
0.4 miles
Burlington
Apparel
10,794 visits/mo
0.4 miles
AutoZone
Shops & Services
8,177 visits/mo
0.1 miles
Demographics for 60651, IL
62,819
Population
22,885
Households
2.7
Avg Household Size
36
Median Age
16%
College-Educated
77%
High-School Grad
3.5 sq mi
ZIP Area
17,948
Density / Sq Mi
$52,963
Median Household Income
$33,783
Median Earnings
$1,186
Median Rent
$262,700
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?
Commercial kitchen - Includes a full commissary kitchen and additional high-ceiling open space that can be leased and potentially divided.
Where is this commercial kitchen located?
The property is located at 3515 W Grand Ave Chicago, IL.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 7200 SF building on a triangular 22,400 SF lot with parking lot and 28 spaces plus entry/exit gates on Grand and Thomas Sts.; 2,400 SF is leased to a well‑known catering company and includes a full commissary kitchen with large hood, black iron, and walk‑in cooler.; 4,800 SF high‑ceiling wide‑open space available for lease at $20 NNN, with multiple entrances that could allow division.
