Chicago Commercial Property For
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5257 S Ashland Ave, Chicago, IL 60609
Commercial property in Chicago's New City Community for sale.
Property Size12,901 SF
Price / SF$267.81
Days on Market259
Property Features for 5257 S Ashland Ave
General Information
Standard status
Active
Size
12,901 SF
Total Parking Spaces
40
Property subtype
Retail, Office
Zoning
C1-2 Commercial
Occupancy
100%
Lease Type
NNN
Net Operating Income
$259,190
Building Details
Year Built
2004
Year Renovated
2023
Stories
1
Units
4
Tenancy
Multi
Listing Agency:
Network Real Estate Group
(708) 927-8000
Listed By:
Neil Haleem · License #IL 37077037778HN
Source:
Crexi
Added: Dec 4, 2025
Changed: Aug 14
Last Checked: Aug 19 at 11:08PM
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 Network Real Estate Group
Investment Insights
Based on property information with market context.
Located at the northeast corner of 53rd & Ashland in Chicago's New City Community, this property is situated in a densely populated area. The surrounding properties along Ashland Avenue consist of commercial, mixed-use, and some multifamily buildings. The site is on the south end of a major shopping and business district along 47th Street and Ashland Avenue. The property is an institutional-quality investment anchored by a long-term GSA lease with an initial ten-year term and five years firm, providing government-backed cash flow. The GSA occupies 8,776 square feet (67.8%) of the approximately 12,901 square foot single-story building and operates a Social Security Office that has served the immediate trade area for more than 20 years. This location represents a strategic relocation from a nearby, older facility into a substantially upgraded and modernized building. Rent commenced May 15, 2023, and the GSA has invested nearly $1,000,000 in tenant improvements, underscoring its long-term commitment to the site and the surrounding community. The property has undergone a comprehensive capital improvement program, including a new roof, new HVAC systems, and a complete modern interior renovation of the GSA-leased space, minimizing near-term capital expenditure risk. The remaining 4,214 square feet consists of three value-add retail tenants that provide additional income and upside potential. Unit 5255 (approximately 1,180 square feet) is leased to Lomax Urban Outreach; Unit 5257 (approximately 1,575 square feet) is occupied by a nail salon on a month-to-month gross lease, offering future re-tenanting or rent growth potential; and Unit 5259 (approximately 1,380 square feet) is leased to a convenience store under a modified gross lease. There is an annual $111,122 Tenant Improvement allowance reimbursed to the landlord through May 31, 2028.
Key Highlights
- Long‑term GSA lease provides durable, government‑backed cash flow with an initial ten (10)-year term and five (5) years firm.
- Significant annual Tenant Improvement allowance of $111,122 reimbursed to the landlord through May 31, 2028, substantially increasing the effective NOI and cap rate.
- Recent comprehensive capital improvement program minimizes near‑term capital expenditure risk, including a new roof, new HVAC systems, and a complete interior renovation of the GSA‑leased 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
$276,804
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
8.01%
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%
$5,536,080
$5.5M
Cap Rate 7%
$3,954,343
$4.0M
Cap Rate 9%
$3,075,600
$3.1M
Market Conditions
NOI Build-Up for 12,901 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
$495.4K $38.40/SF
− Vacancy
−$126.3K −$9.79/SF
EGI
$369.1K $28.61/SF
− OpEx
−$92.3K −$7.15/SF
NOI
$276.8K $21.46/SF
Area
Chicago, IL
Vacancy
25.50%
Lease Rate
$38.40 /SF/Yr
Expense Ratio
25.00%
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%
$5,536,080
Cap Rate 7%
$3,954,343
Cap Rate 9%
$3,075,600
Alternative Uses
Best Use
Office B
$3.95M
$3.46M – $4.61M
NOI $276,804 @ 7.0% cap · market cap 8.01%
Second Best
Retail
$2.55M
$2.23M – $2.97M
NOI $178,483 @ 7.0% cap · market cap 5.17%
Theoretical Best
Office A
$6.08M
$5.32M – $7.10M
NOI $425,795 @ 7.0% cap · market cap 12.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
735
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60609, IL
65,770
Population
26,122
Households
2.5
Avg Household Size
34
Median Age
20%
College-Educated
76%
High-School Grad
7.7 sq mi
ZIP Area
8,542
Density / Sq Mi
$54,142
Median Household Income
$37,694
Median Earnings
$1,070
Median Rent
$251,600
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Commercial property in Chicago's New City Community for sale.
Where is this shopping center located?
The property is located at 5257 S Ashland Ave Chicago, IL.
What is the asking price?
The asking price for this property is $3,455,000.
What are key features of this property?
This property features: Long‑term GSA lease provides durable, government‑backed cash flow with an initial ten (10)-year term and five (5) years firm.; Significant annual Tenant Improvement allowance of $111,122 reimbursed to the landlord through May 31, 2028, substantially increasing the effective NOI and cap rate.; Recent comprehensive capital improvement program minimizes near‑term capital expenditure risk, including a new roof, new HVAC systems, and a complete interior renovation of the GSA‑leased space.
