Corner Restaurant
New
For Sale
$725,000
3851 S Michigan Avenue, Chicago, IL 60653
Restaurant building with on-site parking and a corner position in Chicago.
Property Size2,300 SF
Price / SF$315.22
Days on Market3
Property Features for 3851 S Michigan Avenue
General Information
Standard status
Active
Size
2,300 SF
Total Parking Spaces
25
Property subtype
COMMERCIAL
Taxes and HOA fees
Annual Taxes
$41,982
Building Details
Building Size
2,300 SF
Listing Agency:
Midwest Real Estate Brokerage LLC
Listed By:
Joel Mandujano · License #475139231
(773) 719-5207
Source:
Dawnmckennagroup
Added: Sep 2
Changed: Sep 4
Last Checked: Sep 4 at 5:23AM
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 Midwest Real Estate Brokerage LLC
Investment Insights
Based on property information with market context.
This restaurant property includes a building and a parking lot with capacity for 25 cars. The site is offered in as-is condition and is positioned for restaurant, coffee shop, or fast-food use as described in the property information.
Located at 3851 S Michigan Avenue in Chicago, the property is near Lake Michigan and Chicago’s downtown area. Its corner setting and exposure to vehicular traffic provide notable physical characteristics for a food-service operator.
Located at 3851 S Michigan Avenue in Chicago, the property is near Lake Michigan and Chicago’s downtown area. Its corner setting and exposure to vehicular traffic provide notable physical characteristics for a food-service operator.
Key Highlights
- Parking lot accommodates 25 cars
- Corner‑position restaurant property
- Located at 3851 S Michigan Avenue, Chicago, IL 60653
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
$42,808
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
5.90%
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%
$856,160
$856.2K
Cap Rate 7%
$611,543
$611.5K
Cap Rate 9%
$475,644
$475.6K
Market Conditions
NOI Build-Up for 2,300 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
$60.7K $26.40/SF
− Vacancy
−$3.6K −$1.58/SF
EGI
$57.1K $24.82/SF
− OpEx
−$14.3K −$6.20/SF
NOI
$42.8K $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%
$856,160
Cap Rate 7%
$611,543
Cap Rate 9%
$475,644
Alternative Uses
Best Use
Specialty Retail
$611.5K
$535.1K – $713.5K
NOI $42,808 @ 7.0% cap · market cap 5.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.08M
$948.9K – $1.27M
NOI $75,911 @ 7.0% cap · market cap 10.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,138
Businesses Nearby
104k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 55%
Shops & Services 41%
Dining 3%
Mariano's
Groceries
57,390 visits/mo
0.4 miles
BP
Shops & Services
15,665 visits/mo
0.4 miles
Mobil
Shops & Services
13,876 visits/mo
0.5 miles
Dollar General
Shops & Services
13,526 visits/mo
0.5 miles
JJ Fish & Chicken
Dining
3,600 visits/mo
0.5 miles
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 Retail in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant building with on-site parking and a corner position in Chicago.
Where is this conventional restaurant located?
The property is located at 3851 S Michigan Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Parking lot accommodates 25 cars; Corner‑position restaurant property; Located at 3851 S Michigan Avenue, Chicago, IL 60653
