Leased Strip
For Sale
$1,199,000
5159 W Diversey Avenue, Chicago, IL 60639
Five occupied retail storefronts anchor a commercial property with rear tandem parking and established neighborhood surroundings.
Property Size7,600 SF
Price / SF$157.76
Days on Market368
Property Features for 5159 W Diversey Avenue
General Information
Standard status
Active
Size
7,600 SF
Total Parking Spaces
4
Property subtype
COMMERCIAL
Additional Details
Corner Location
Yes
Taxes and HOA fees
Annual Taxes
$28,858
Building Details
Building Size
7,600 SF
Year Built
1943
Tenancy
Multi
Listing Agency:
Century 21 Circle
(773) 983-1553
Listed By:
Mark Ahmad · License #471007186
Source:
Harkinsandassociates
Added: Aug 11, 2025
Changed: Aug 8
Last Checked: Aug 12 at 3:43PM
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 Century 21 Circle
Investment Insights
Based on property information with market context.
This strip mall contains five leased retail stores within a building constructed in 1943. The property includes four tandem parking spaces positioned behind the building, supporting access for occupants and visitors. The reported building sizes conflict, so no square-footage figure is included.
Located at the intersection of W Diversey Avenue and Laramie Avenue, the property sits within a busy commercial district serving surrounding residential and business uses. Walgreens and currency exchange stores are directly across the street, adding established retail activity to the immediate setting. The property address is 5159 W Diversey Avenue, Chicago, Illinois 60639.
Located at the intersection of W Diversey Avenue and Laramie Avenue, the property sits within a busy commercial district serving surrounding residential and business uses. Walgreens and currency exchange stores are directly across the street, adding established retail activity to the immediate setting. The property address is 5159 W Diversey Avenue, Chicago, Illinois 60639.
Key Highlights
- Five leased retail stores in one strip mall property
- Four tandem parking spaces located at the rear
- Corner position at W Diversey Avenue and Laramie Avenue
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
$108,419
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
9.04%
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%
$2,168,380
$2.2M
Cap Rate 7%
$1,548,843
$1.5M
Cap Rate 9%
$1,204,656
$1.2M
Market Conditions
NOI Build-Up for 7,600 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
$168.7K $22.20/SF
− Vacancy
−$13.8K −$1.82/SF
EGI
$154.9K $20.38/SF
− OpEx
−$46.5K −$6.11/SF
NOI
$108.4K $14.27/SF
Area
ZIP 60639
Vacancy
8.20%
Lease Rate
$22.20 /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%
$2,168,380
Cap Rate 7%
$1,548,843
Cap Rate 9%
$1,204,656
Alternative Uses
Best Use
Retail
$1.55M
$1.36M – $1.81M
NOI $108,419 @ 7.0% cap · market cap 9.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.36M
$2.94M – $3.92M
NOI $235,223 @ 7.0% cap · market cap 19.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,071
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?
Strip mall - Five occupied retail storefronts anchor a commercial property with rear tandem parking and established neighborhood surroundings.
Where is this strip mall located?
The property is located at 5159 W Diversey Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: Five leased retail stores in one strip mall property; Four tandem parking spaces located at the rear; Corner position at W Diversey Avenue and Laramie Avenue
