Mayfair Industrial and Office
For Sale
$1,799,000
4220-4228 W Montrose Avenue, Chicago, IL 60641
Industrial and office property in Mayfair with development opportunity.
Property Size11,700 SF
Price / SF$153.76
Days on Market400
Property Features for 4220-4228 W Montrose Avenue
General Information
Standard status
Active
Size
11,700 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$41,112
Building Details
Building Size
11,700 SF
Year Built
1959
Stories
1
Units
3
Listing Agency:
Strauss Realty Ltd
(773) 736-3600
Listed By:
Dale Strauss · License #471007335
(773) 736-3600
Source:
Gia-sells
Added: Jul 21, 2025
Changed: Aug 23
Last Checked: Aug 24 at 12:38PM
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 Strauss Realty Ltd
Investment Insights
Based on property information with market context.
Located in Mayfair, this property offers an industrial and office space suitable for development. The site includes a total of 11,700 square feet of buildings situated on 18,445 square feet of land, complete with on-site parking lots. The property is positioned on Montrose Avenue, a high-traffic thoroughfare, with convenient access to I-90, the O'Hare Blue Line, and other major routes. The building at 4220 W. Montrose Avenue is a 2,300-square-foot office building with an on-site parking lot accommodating approximately 8 vehicles. The office layout features a reception area, 8 private offices, 2 bathrooms, a kitchen, storage space, a conference area, and an open workspace. The building at 4224-4228 W. Montrose is a 7,100-square-foot warehouse/shop with a parking lot, an office, and 3 garage doors; it is currently leased to a lawnmower repair company. Additionally, there is a rear 2,300-square-foot warehouse with a 600-square-foot office, a bathroom, and fenced parking/storage area.
Key Highlights
- High‑traffic location on Montrose Avenue, close to I‑90 and O'Hare Blue Line.
- Substantial 11,700 SF of buildings on a large 18,445 SF lot.
- Onsite parking lots included.
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
$88,623
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
4.93%
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%
$1,772,460
$1.8M
Cap Rate 7%
$1,266,043
$1.3M
Cap Rate 9%
$984,700
$984.7K
Market Conditions
NOI Build-Up for 11,700 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
$110.3K $9.43/SF
− Vacancy
−$6.1K −$0.52/SF
EGI
$104.3K $8.91/SF
− OpEx
−$15.6K −$1.34/SF
NOI
$88.6K $7.57/SF
Area
Chicago, IL
Vacancy
5.50%
Lease Rate
$9.43 /SF/Yr
Expense Ratio
15.00%
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%
$1,772,460
Cap Rate 7%
$1,266,043
Cap Rate 9%
$984,700
Alternative Uses
Best Use
Office B
$3.59M
$3.14M – $4.18M
NOI $251,035 @ 7.0% cap · market cap 13.95%
Second Best
Warehouse
$1.27M
$1.11M – $1.48M
NOI $88,623 @ 7.0% cap · market cap 4.93%
Theoretical Best
Office A
$5.52M
$4.83M – $6.44M
NOI $386,156 @ 7.0% cap · market cap 21.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,320
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60641, IL
69,354
Population
27,377
Households
2.5
Avg Household Size
37
Median Age
36%
College-Educated
85%
High-School Grad
4.0 sq mi
ZIP Area
17,339
Density / Sq Mi
$81,649
Median Household Income
$46,376
Median Earnings
$1,249
Median Rent
$373,200
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - Industrial and office property in Mayfair with development opportunity.
Where is this warehouse located?
The property is located at 4220-4228 W Montrose Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,799,000.
What are key features of this property?
This property features: High‑traffic location on Montrose Avenue, close to I‑90 and O'Hare Blue Line.; Substantial 11,700 SF of buildings on a large 18,445 SF lot.; Onsite parking lots included.
