Two-Story Mixed-Use
For Sale
Under Contract
$529,900
5037 W Diversey Avenue, Chicago, IL 60639
Commercial Sale, Chicago, IL
Property Size4,200 SF
Lot Size0.07 Acres
Price / SF$126.17
Days on Market168
Property Features for 5037 W Diversey Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
COMMR
Directions
North or South on Cicero Ave to Diversey St. West on Diversey to PROPERTY!
Subdivision
CHI - Belmont Cragin
Standard status
Active Under Contract
APN
13284010100000
Lot size
0.07 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
8839
Utilities
Utilities
Natural Gas Available
Cooling system
Central Air
Amenities
rooftop deck
attached garage/storage space
Building Details
Year built
1962
Floors in Building
2
Number of units
2
Building materials
Brick
Roof type
Rubber
Listing Agency:
REMAX Legends · RE/MAX International
(630) 216-8000
Listed By:
Edgardo Guerrero · License #475159071
(708) 655-5000
Added: Mar 6
Changed: Aug 20
Last Checked: Aug 21 at 2:06PM
MLS# 12585356
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This two-story mixed-use building combines an operating restaurant with an upper-level residential unit. The restaurant includes seating for 70+ guests, a bar, commercial kitchen equipment, walk-in coolers, storage, and multiple entrances. The second floor contains three bedrooms, a living room, formal dining room, eat-in kitchen, and laundry room. A rooftop deck is positioned above the rear restaurant area, and an attached garage provides additional storage space.
The property is located at the intersection of Diversey Avenue and LeClaire Avenue in Chicago’s Belmont Cragin community. Its commercial zoning is COMMR. Building improvements include brick construction, central air, a rubber roof, and natural gas availability. Constructed in 1962, the property supports a combination of restaurant and residential uses within one building.
The property is located at the intersection of Diversey Avenue and LeClaire Avenue in Chicago’s Belmont Cragin community. Its commercial zoning is COMMR. Building improvements include brick construction, central air, a rubber roof, and natural gas availability. Constructed in 1962, the property supports a combination of restaurant and residential uses within one building.
Key Highlights
- Two‑story mixed‑use property at 5037 W Diversey Avenue, Chicago, IL 60639
- Restaurant seating for 70+ guests with bar and commercial kitchen
- Walk‑in coolers, storage, and multiple entrances serve the restaurant space
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
$16,422
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
3.10%
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%
$328,440
$328.4K
Cap Rate 7%
$234,600
$234.6K
Cap Rate 9%
$182,467
$182.5K
Market Conditions
NOI Build-Up for 4,200 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
$27.2K $6.48/SF
− Vacancy
−$3.8K −$0.89/SF
EGI
$23.5K $5.59/SF
− OpEx
−$7.0K −$1.68/SF
NOI
$16.4K $3.91/SF
Area
ZIP 60639
Vacancy
13.80%
Lease Rate
$6.48 /SF/Yr
Expense Ratio
30.00%
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%
$328,440
Cap Rate 7%
$234,600
Cap Rate 9%
$182,467
Alternative Uses
Best Use
Specialty Retail
$984.6K
$861.5K – $1.15M
NOI $68,919 @ 7.0% cap · market cap 13.01%
Second Best
Mixed Use
$931.5K
$815.1K – $1.09M
NOI $65,205 @ 7.0% cap · market cap 12.31%
Theoretical Best
Office A
$1.86M
$1.62M – $2.17M
NOI $129,992 @ 7.0% cap · market cap 24.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,803
Businesses Nearby
Explore this area
Business Placement
Demographics for 60639, IL
89,543
Population
28,656
Households
3.1
Avg Household Size
34
Median Age
15%
College-Educated
69%
High-School Grad
5.0 sq mi
ZIP Area
17,909
Density / Sq Mi
$59,710
Median Household Income
$34,846
Median Earnings
$1,212
Median Rent
$289,000
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?
Mixed-use property - Restaurant and residential components include a commercial kitchen, rooftop deck, and attached garage-storage area.
Where is this mixed-use property located?
The property is located at 5037 W Diversey Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $529,900.
What are key features of this property?
This property features: Two‑story mixed‑use property at 5037 W Diversey Avenue, Chicago, IL 60639; Restaurant seating for 70+ guests with bar and commercial kitchen; Walk‑in coolers, storage, and multiple entrances serve the restaurant space
