Mixed-Use Building with
For Sale
$469,900
5039 W Diversey Ave, Chicago, IL 60639
Commercial space includes a restaurant, bar, commercial kitchen, rooftop deck, and attached garage or storage area.
Property Size3,500 SF
Price / SF$134.26
Days on Market39
Property Features for 5039 W Diversey Ave
General Information
Standard status
Active
Size
3,500 SF
Building Details
Year Built
1962
Listing Agency:
REMAX Legends
(312) 465-9778
Listed By:
Edgardo Guerrero · License #475159071
Source:
Bktchicago
Added: Jul 24
Changed: Aug 29
Last Checked: Aug 30 at 6:57PM
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 REMAX Legends
Investment Insights
Based on property information with market context.
This 3,500-square-foot mixed-use building combines an operating restaurant with residential space above. The commercial area includes seating for 70+ guests, a bar, walk-in coolers, substantial storage, and a fully equipped kitchen. Multiple entrances support flexible circulation, while the property also includes an attached garage or storage area and a rooftop deck over the rear restaurant section.
The property is located at 5039 W Diversey Ave in Chicago, within a high-traffic corridor surrounded by established retail, restaurants, and neighborhood businesses. The setting provides access to major transit routes along with ongoing pedestrian and vehicle activity. Built in 1962, the building offers a combination of commercial operations and residential occupancy within one property.
The property is located at 5039 W Diversey Ave in Chicago, within a high-traffic corridor surrounded by established retail, restaurants, and neighborhood businesses. The setting provides access to major transit routes along with ongoing pedestrian and vehicle activity. Built in 1962, the building offers a combination of commercial operations and residential occupancy within one property.
Key Highlights
- 3,500‑square‑foot mixed‑use building with restaurant and residential components
- Restaurant seating for 70+ guests with bar area and fully equipped commercial kitchen
- Walk‑in coolers and ample storage support restaurant operations
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
$13,685
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
2.91%
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%
$273,700
$273.7K
Cap Rate 7%
$195,500
$195.5K
Cap Rate 9%
$152,056
$152.1K
Market Conditions
NOI Build-Up for 3,500 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
$22.7K $6.48/SF
− Vacancy
−$3.1K −$0.89/SF
EGI
$19.6K $5.59/SF
− OpEx
−$5.9K −$1.68/SF
NOI
$13.7K $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%
$273,700
Cap Rate 7%
$195,500
Cap Rate 9%
$152,056
Alternative Uses
Best Use
Specialty Retail
$820.5K
$717.9K – $957.2K
NOI $57,432 @ 7.0% cap · market cap 12.22%
Second Best
Mixed Use
$776.3K
$679.2K – $905.6K
NOI $54,338 @ 7.0% cap · market cap 11.56%
Theoretical Best
Office A
$1.55M
$1.35M – $1.81M
NOI $108,326 @ 7.0% cap · market cap 23.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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 Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial space includes a restaurant, bar, commercial kitchen, rooftop deck, and attached garage or storage area.
Where is this mixed-use property located?
The property is located at 5039 W Diversey Ave Chicago, IL.
What is the asking price?
The asking price for this property is $469,900.
What are key features of this property?
This property features: 3,500‑square‑foot mixed‑use building with restaurant and residential components; Restaurant seating for 70+ guests with bar area and fully equipped commercial kitchen; Walk‑in coolers and ample storage support restaurant operations
