Bronzeville Multifamily Apartment
For Sale
$3,500,000
4725 S Michigan Ave, Chicago, IL 60615
Five-story, 28-unit multifamily asset with studio, 1-bedroom, and 2-bedroom apartments, elevator, and on-site parking.
Property Size18,400 SF
Lot Size0.31 Acres
Days on Market114
Property Features for 4725 S Michigan Ave
General Information
Standard status
Active
Size
18,400 SF
Total Parking Spaces
20
Lot size
0.31 Acres
Property subtype
Multi-Family
Zoning
RM-5
Additional Details
Multifamily Units
28
Amenities
central boiler steam heating system
passenger elevator
Building Details
Building Size
18,400 SF
Year Built
1967
Stories
5
Units
28
Listing Agency:
AW Properties Global
Listed By:
Jeffrey Baasch · License #475107724
Source:
Commercialcafe
Added: Jun 1
Changed: Sep 18
Last Checked: Sep 21 at 4:26AM
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 AW Properties Global
Investment Insights
Based on property information with market context.
AW Properties presents a five-story, 28-unit multifamily apartment building in Chicago’s Bronzeville neighborhood. The unit mix includes two studio units, sixteen 1-bedroom 1-bath units, and ten 2-bedroom 1-bath units. The building is reported to be well maintained, and all units are described as being in good condition.
Amenities include a central boiler steam heating system and a passenger elevator. An on-site parking lot provides approximately 20 parking spaces. The property sits on an approximately 85’ x 160’ parcel and is zoned RM-5.
For sale as a well-occupied, stabilized multifamily asset, the property offers a diversified residential layout across studios, one-bedrooms, and two-bedrooms within a single 28-unit structure.
Amenities include a central boiler steam heating system and a passenger elevator. An on-site parking lot provides approximately 20 parking spaces. The property sits on an approximately 85’ x 160’ parcel and is zoned RM-5.
For sale as a well-occupied, stabilized multifamily asset, the property offers a diversified residential layout across studios, one-bedrooms, and two-bedrooms within a single 28-unit structure.
Key Highlights
- 5‑story, 28‑unit multifamily asset (built 1967) in Chicago’s Bronzeville neighborhood
- Unit mix includes 2 studios, 16 one‑bedroom/1‑bath units, and 10 two‑bedroom/1‑bath units
- Passenger elevator and central boiler steam heating system
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
$282,057
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
8.06%
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%
$5,641,140
$5.6M
Cap Rate 7%
$4,029,386
$4.0M
Cap Rate 9%
$3,133,967
$3.1M
Market Conditions
NOI Build-Up for 18,400 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
$541.0K $29.40/SF
− Vacancy
−$28.1K −$1.53/SF
EGI
$512.8K $27.87/SF
− OpEx
−$230.8K −$12.54/SF
NOI
$282.1K $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%
$5,641,140
Cap Rate 7%
$4,029,386
Cap Rate 9%
$3,133,967
Alternative Uses
Best Use
Apartment 5plus
$4.03M
$3.53M – $4.70M
NOI $282,057 @ 7.0% cap · market cap 8.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.68M
$7.59M – $10.12M
NOI $607,288 @ 7.0% cap · market cap 17.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
28
Residential units
Location Intelligence
Trade Area within ½ mile
1,493
Businesses Nearby
Explore this area
Business Placement
Demographics for 60615, IL
43,502
Population
24,997
Households
1.7
Avg Household Size
35
Median Age
61%
College-Educated
93%
High-School Grad
2.2 sq mi
ZIP Area
19,774
Density / Sq Mi
$62,105
Median Household Income
$47,186
Median Earnings
$1,444
Median Rent
$305,200
Median Home Value
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Apartment building - Five-story, 28-unit multifamily asset with studio, 1-bedroom, and 2-bedroom apartments, elevator, and on-site parking.
Where is this apartment building located?
The property is located at 4725 S Michigan Ave Chicago, IL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 5‑story, 28‑unit multifamily asset (built 1967) in Chicago’s Bronzeville neighborhood; Unit mix includes 2 studios, 16 one‑bedroom/1‑bath units, and 10 two‑bedroom/1‑bath units; Passenger elevator and central boiler steam heating system
