Two Lots on Western
For Sale
Contact for pricing
Pending
5601 S Western Avenue, Chicago, IL 60636
Two lots zoned C2-2, suitable for redevelopment or renovation.
Property Size2,300 SF
Lot Size0.51 Acres
Days on Market169
Property Features for 5601 S Western Avenue
General Information
Standard status
Pending
Size
2,300 SF
Class
C
Lot size
0.51 Acres
Property subtype
Retail
Zoning
COMMR
Investment Type
Owner/User
Building Details
Year Built
1979
Units
2
Listing Agency:
Network Real Estate Group
(708) 927-8000
Listed By:
Neil Haleem · License #IL 37077037778HN
Source:
Crexi
Added: Feb 23
Changed: Aug 8
Last Checked: Jul 31 at 5:10PM
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.
The property consists of two lots separated by an alley. The north lot measures 9,375 square feet, while the south lot is 14,000 square feet. Located at the southeast corner of 56th Street and Western Avenue, the site is zoned C2-2, which allows for a variety of uses. The property, with a building size of 2,300 square feet, was formerly occupied by a used car dealer and currently has two structures that could be renovated or demolished to accommodate a new development. The surrounding area features a mix of national and regional retailers, including Dollar Tree, Dunkin Donuts, KFC, and Advance Auto Parts, along with independently owned retail and auto service businesses, and new and used car dealers. The neighborhood to the east and west of Western Avenue is densely populated with single and multifamily residences.
Key Highlights
- Large combined lot size (9,375 sf and 14,000 sf) offering substantial development potential.
- Excellent location at the southeast corner of 56th St and Western Ave.
- Flexible C2‑2 zoning allows for a variety of uses.
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
$31,820
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
4.25%
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%
$636,400
$636.4K
Cap Rate 7%
$454,571
$454.6K
Cap Rate 9%
$353,556
$353.6K
Market Conditions
NOI Build-Up for 2,300 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
$49.7K $21.60/SF
− Vacancy
−$4.2K −$1.84/SF
EGI
$45.5K $19.76/SF
− OpEx
−$13.6K −$5.93/SF
NOI
$31.8K $13.83/SF
Area
Chicago, IL
Vacancy
8.50%
Lease Rate
$21.60 /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%
$636,400
Cap Rate 7%
$454,571
Cap Rate 9%
$353,556
Alternative Uses
Best Use
Retail
$454.6K
$397.8K – $530.3K
NOI $31,820 @ 7.0% cap · market cap 4.25%
Second Best
Industrial
$206.0K
$180.3K – $240.4K
NOI $14,423 @ 7.0% cap · market cap 1.93%
Theoretical Best
Office A
$1.08M
$948.9K – $1.27M
NOI $75,911 @ 7.0% cap · market cap 10.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
586
Businesses Nearby
90k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
Dollar Tree
Shops & Services
25,212 visits/mo
0.3 miles
BP
Shops & Services
14,707 visits/mo
0.1 miles
Starbucks
Dining
14,279 visits/mo
0.3 miles
KFC
Dining
11,891 visits/mo
0.4 miles
Shell
Shops & Services
7,047 visits/mo
0.5 miles
Demographics for 60636, IL
34,800
Population
14,363
Households
2.4
Avg Household Size
35
Median Age
11%
College-Educated
78%
High-School Grad
3.9 sq mi
ZIP Area
8,923
Density / Sq Mi
$35,077
Median Household Income
$30,411
Median Earnings
$1,135
Median Rent
$150,600
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- City Tire Repair Shop — 5112 N Lincoln Ave, Chicago, IL 60625
- BARAKO AUTOMATIVE REPAIR LLC — 5126 N Ravenswood Ave, Chicago, IL 60640
- Electric vehicle charging stations — 2518-2524 W Winona St, Chicago, IL 60625
- Car-X Tire & Auto — 5150 N Western Ave, Chicago, IL 60625
- Lincoln Wilson Auto Service — 5101 N Western Ave, Chicago, IL 60625
Frequently Asked Questions
What type of property is this?
Auto shop - Two lots zoned C2-2, suitable for redevelopment or renovation.
Where is this auto shop located?
The property is located at 5601 S Western Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Large combined lot size (9,375 sf and 14,000 sf) offering substantial development potential.; Excellent location at the southeast corner of 56th St and Western Ave.; Flexible C2‑2 zoning allows for a variety of uses.
