Office Building with Development
For Sale
$3,200,000
5850 W Belmont Avenue, Chicago, IL 60634
Chicago office building on 1.3 acres with Belmont frontage and B3-1 zoning for renovation or redevelopment.
Property Size13,330 SF
Days on Market73
Property Features for 5850 W Belmont Avenue
General Information
Standard status
Active
Size
13,330 SF
Property subtype
Development Opportunity
Building Details
Building Size
13,330 SF
Listing Agency:
Troy Companies
Listed By:
Steve Cioromski
(847) 612-8716
Source:
Troyrealtyltd
Added: Jun 24
Changed: Aug 23
Last Checked: Sep 4 at 4:12AM
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 Troy Companies
Investment Insights
Based on property information with market context.
An existing office building totaling 13,330 square feet sits on a spacious 1.3-acre site, with a full lower level that is not included in the stated square footage. The property is offered as a value-add opportunity, with modernization and renovation possibilities depending on the intended end use. Ample on-site parking is available to support occupant and customer access, whether the building is used as-is, reconfigured for multiple users, or reworked for a new concept.
The building benefits from approximately 455 feet of frontage along Belmont Ave, with high traffic counts noted along the corridor. The property is zoned B3-1 for versatile use, and the seller also notes the site could be considered for multi-tenant, single-tenant, or new construction approaches. The remarks further discuss the site’s potential for three to four freestanding retail pad sites.
For buyers and investors, this asset can fit operators looking for an office conversion and repositioning project, particularly where frontage and zoning flexibility support a broader tenant mix. Alternatively, the combination of a sizeable parcel, substantial road frontage, and B3-1 zoning may appeal to developers evaluating redevelopment options that capitalize on corridor visibility. Inquiries are available for additional details on the building and site considerations.
The building benefits from approximately 455 feet of frontage along Belmont Ave, with high traffic counts noted along the corridor. The property is zoned B3-1 for versatile use, and the seller also notes the site could be considered for multi-tenant, single-tenant, or new construction approaches. The remarks further discuss the site’s potential for three to four freestanding retail pad sites.
For buyers and investors, this asset can fit operators looking for an office conversion and repositioning project, particularly where frontage and zoning flexibility support a broader tenant mix. Alternatively, the combination of a sizeable parcel, substantial road frontage, and B3-1 zoning may appeal to developers evaluating redevelopment options that capitalize on corridor visibility. Inquiries are available for additional details on the building and site considerations.
Key Highlights
- 13,330 SF office building on a 1.3‑acre site with Belmont Ave frontage
- 455 ft of frontage along Belmont Ave with high traffic counts
- Zoned B3‑1, offering versatile use for renovation, multi‑tenant, or redevelopment
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
$183,799
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
5.74%
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%
$3,675,980
$3.7M
Cap Rate 7%
$2,625,700
$2.6M
Cap Rate 9%
$2,042,211
$2.0M
Market Conditions
NOI Build-Up for 13,330 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
$326.3K $24.48/SF
− Vacancy
−$81.3K −$6.10/SF
EGI
$245.1K $18.38/SF
− OpEx
−$61.3K −$4.60/SF
NOI
$183.8K $13.79/SF
Area
ZIP 60634
Vacancy
24.90%
Lease Rate
$24.48 /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%
$3,675,980
Cap Rate 7%
$2,625,700
Cap Rate 9%
$2,042,211
Alternative Uses
Best Use
Office B
$2.63M
$2.30M – $3.06M
NOI $183,799 @ 7.0% cap · market cap 5.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.63M
$3.18M – $4.24M
NOI $254,436 @ 7.0% cap · market cap 7.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,843
Businesses Nearby
Explore this area
Business Placement
Demographics for 60634, IL
75,694
Population
29,344
Households
2.6
Avg Household Size
41
Median Age
27%
College-Educated
87%
High-School Grad
7.1 sq mi
ZIP Area
10,661
Density / Sq Mi
$84,997
Median Household Income
$46,694
Median Earnings
$1,271
Median Rent
$333,900
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?
Office building - Chicago office building on 1.3 acres with Belmont frontage and B3-1 zoning for renovation or redevelopment.
Where is this office building located?
The property is located at 5850 W Belmont Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: 13,330 SF office building on a 1.3‑acre site with Belmont Ave frontage; 455 ft of frontage along Belmont Ave with high traffic counts; Zoned B3‑1, offering versatile use for renovation, multi‑tenant, or redevelopment
