Mixed-Use Building with
For Sale
$849,900
5940 W Montrose Ave, Chicago, IL 60634
Two-level property combines open commercial space, private parking, and an updated residential unit for live/work flexibility.
Property Size4,000 SF
Price / SF$212.48
Days on Market132
Property Features for 5940 W Montrose Ave
General Information
Standard status
Active
Size
4,000 SF
Amenities
large employee kitchen
4 bathrooms
ample storage
private parking
high ceilings
exposed brick
Building Details
Year Built
1957
Year Renovated
2024
Buildings
1
Tenancy
Multi
Listing Agency:
Nelly Corp Realty
Listed By:
Patricia Santiago · License #475181206
(773) 929-1200
Source:
Bktchicago
Added: Apr 24
Changed: Aug 31
Last Checked: Sep 1 at 9:42PM
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 Nelly Corp Realty
Investment Insights
Based on property information with market context.
Positioned at 5940 W Montrose Avenue in Chicago’s Portage Park, this mixed-use property combines commercial and residential components across two levels. The main floor contains 3,000 square feet of open commercial area with high ceilings, exposed brick, an employee kitchen, four bathrooms, storage, and private parking. The space can accommodate retail, professional or medical office, personal service, restaurant or café, and fitness uses as identified for the property.
The upper level includes a 1,000-square-foot, two-bedroom, one-bath apartment renovated in 2024. Improvements include a new kitchen and appliances, hardwood flooring, new furnace, new water heater, central air, and new electrical service. Additional capital work includes a full tear-off and new decking on the upper roof in 2023, while the lower roof is approximately 10 years old. The parking lot was sealed in 2021. The property is tenant occupied and offered as-is.
The upper level includes a 1,000-square-foot, two-bedroom, one-bath apartment renovated in 2024. Improvements include a new kitchen and appliances, hardwood flooring, new furnace, new water heater, central air, and new electrical service. Additional capital work includes a full tear-off and new decking on the upper roof in 2023, while the lower roof is approximately 10 years old. The parking lot was sealed in 2021. The property is tenant occupied and offered as-is.
Key Highlights
- 3,000 SF of open commercial space with high ceilings and exposed brick
- 1,000‑square‑foot apartment renovated in 2024 with 2 beds and 1 bath
- Commercial area includes employee kitchen, 4 bathrooms, storage, and private parking
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
$61,050
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
7.18%
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%
$1,221,000
$1.2M
Cap Rate 7%
$872,143
$872.1K
Cap Rate 9%
$678,333
$678.3K
Market Conditions
NOI Build-Up for 4,000 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
$105.6K $26.40/SF
− Vacancy
−$7.9K −$1.98/SF
EGI
$97.7K $24.42/SF
− OpEx
−$36.6K −$9.16/SF
NOI
$61.1K $15.26/SF
Area
ZIP 60634
Vacancy
7.50%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
37.50%
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%
$1,221,000
Cap Rate 7%
$872,143
Cap Rate 9%
$678,333
Alternative Uses
Best Use
Mixed Use
$872.1K
$763.1K – $1.02M
NOI $61,050 @ 7.0% cap · market cap 7.18%
Second Best
Retail
$793.2K
$694.0K – $925.4K
NOI $55,521 @ 7.0% cap · market cap 6.53%
Theoretical Best
Office A
$1.09M
$954.4K – $1.27M
NOI $76,350 @ 7.0% cap · market cap 8.98%
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
1,408
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?
Mixed-use property - Two-level property combines open commercial space, private parking, and an updated residential unit for live/work flexibility.
Where is this mixed-use property located?
The property is located at 5940 W Montrose Ave Chicago, IL.
What is the asking price?
The asking price for this property is $849,900.
What are key features of this property?
This property features: 3,000 SF of open commercial space with high ceilings and exposed brick; 1,000‑square‑foot apartment renovated in 2024 with 2 beds and 1 bath; Commercial area includes employee kitchen, 4 bathrooms, storage, and private parking
