Hyde Park Multifamily Investment
For Sale
Contact for pricing
Pending
5123 S University Ave, Chicago, IL 60615
Multifamily asset in Hyde Park near University of Chicago.
Property Size31,050 SF
Days on Market182
Property Features for 5123 S University Ave
General Information
Standard status
Pending
Size
31,050 SF
Property subtype
Multifamily
Investment Type
Value Add
Building Details
Year Built
1964
Listing Agency:
Kiser Group
Listed By:
Lee Kiser · License #471014529
Source:
Crexi
Added: Feb 23
Changed: Aug 8
Last Checked: Jul 24 at 11:32AM
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 Kiser Group
Investment Insights
Based on property information with market context.
Located at 5123 S. University Ave in Chicago, IL, this multifamily property presents an investment opportunity in the heart of Hyde Park. The property has been under the same family ownership since 1964. Situated near the University of Chicago and the 53rd Street retail corridor, the building benefits from consistent tenant demand. The building features spacious unit layouts with vintage elements, offering value-add potential through interior renovations and modernization of finishes. With the ability to enhance rents through unit upgrades and improved amenities, investors can capitalize on Hyde Park’s limited housing supply and proximity to academic and medical institutions. The property size is 31,050 square feet.
Key Highlights
- Prime location in Hyde Park, steps from the University of Chicago and 53rd Street retail.
- Strong rental fundamentals and consistent tenant demand due to proximity to major institutions.
- Value‑add potential through interior renovations and modernization.
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
$475,970
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
7.44%
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%
$9,519,400
$9.5M
Cap Rate 7%
$6,799,571
$6.8M
Cap Rate 9%
$5,288,556
$5.3M
Market Conditions
NOI Build-Up for 31,050 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
$912.9K $29.40/SF
− Vacancy
−$47.5K −$1.53/SF
EGI
$865.4K $27.87/SF
− OpEx
−$389.4K −$12.54/SF
NOI
$476.0K $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%
$9,519,400
Cap Rate 7%
$6,799,571
Cap Rate 9%
$5,288,556
Alternative Uses
Best Use
Apartment 5plus
$6.80M
$5.95M – $7.93M
NOI $475,970 @ 7.0% cap · market cap 7.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$14.64M
$12.81M – $17.08M
NOI $1,024,799 @ 7.0% cap · market cap 16.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,754
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
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Multifamily asset in Hyde Park near University of Chicago.
Where is this apartment building located?
The property is located at 5123 S University Ave Chicago, IL.
What is the asking price?
The asking price for this property is $6,400,000.
What are key features of this property?
This property features: Prime location in Hyde Park, steps from the University of Chicago and 53rd Street retail.; Strong rental fundamentals and consistent tenant demand due to proximity to major institutions.; Value‑add potential through interior renovations and modernization.
