Bronzeville Multifamily Investment
For Sale
$4,150,000
3603 S King Dr, Chicago, IL 60653
Well-maintained 24-unit building in Chicago's sought-after Bronzeville neighborhood.
Property Size22,500 SF
Price / SF$184.44
Days on Market94
Property Features for 3603 S King Dr
General Information
Standard status
Active
Size
22,500 SF
Property subtype
Multifamily
Building Details
Building Size
22,500 SF
Year Built
1926
Listing Agency:
Kiser Group
(630) 209-3622
Listed By:
Noah Birk · License #ILLINOIS #475125864
(630) 209-3622
Source:
Kisergroup
Added: May 27
Changed: Aug 26
Last Checked: Aug 28 at 9:04AM
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 Kiser Group
Investment Insights
Based on property information with market context.
Located in Chicago's Bronzeville neighborhood, 3603 S. King Dr. is a twenty-four-unit multifamily property. Situated along the historic King Drive corridor, it offers convenient access to downtown Chicago, public transportation, retail options, and major employment hubs. The unit mix features six 3-bedroom/1-bathroom units and eighteen 2-bedroom/1-bathroom units, all with spacious layouts. Each unit includes individual laundry facilities, modern kitchens, and bathrooms. A new boiler was installed in 2025. The property has an in-place cap rate of 7.58% and a current cash-on-cash return of 8.15%. An investor may achieve a projected cap rate of 9.15% and a cash return of 14.45% through continued management and strategic rent increases. The property is 22,500 square feet.
Key Highlights
- Prime location in the highly sought‑after Bronzeville neighborhood, minutes from downtown Chicago, public transportation, retail, and major employment hubs.
- Strong in‑place income with a 7.58% cap rate and 8.15% cash‑on‑cash return, offering a stable, cash‑flowing asset.
- Significant upside potential with projected cap rate of 9.15% and cash return of 14.45% through strategic rent increases and continued management.
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
$344,906
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
8.31%
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%
$6,898,120
$6.9M
Cap Rate 7%
$4,927,229
$4.9M
Cap Rate 9%
$3,832,289
$3.8M
Market Conditions
NOI Build-Up for 22,500 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
$661.5K $29.40/SF
− Vacancy
−$34.4K −$1.53/SF
EGI
$627.1K $27.87/SF
− OpEx
−$282.2K −$12.54/SF
NOI
$344.9K $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%
$6,898,120
Cap Rate 7%
$4,927,229
Cap Rate 9%
$3,832,289
Alternative Uses
Best Use
Apartment 5plus
$4.93M
$4.31M – $5.75M
NOI $344,906 @ 7.0% cap · market cap 8.31%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.61M
$9.28M – $12.38M
NOI $742,608 @ 7.0% cap · market cap 17.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,458
Businesses Nearby
Explore this area
Business Placement
Demographics for 60653, IL
33,146
Population
18,279
Households
1.8
Avg Household Size
37
Median Age
38%
College-Educated
90%
High-School Grad
2.4 sq mi
ZIP Area
13,811
Density / Sq Mi
$39,565
Median Household Income
$49,335
Median Earnings
$856
Median Rent
$347,800
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 - Well-maintained 24-unit building in Chicago's sought-after Bronzeville neighborhood.
Where is this apartment building located?
The property is located at 3603 S King Dr Chicago, IL.
What is the asking price?
The asking price for this property is $4,150,000.
What are key features of this property?
This property features: Prime location in the highly sought‑after Bronzeville neighborhood, minutes from downtown Chicago, public transportation, retail, and major employment hubs.; Strong in‑place income with a 7.58% cap rate and 8.15% cash‑on‑cash return, offering a stable, cash‑flowing asset.; Significant upside potential with projected cap rate of 9.15% and cash return of 14.45% through strategic rent increases and continued management.
