Restaurant with Income-Generating
For Sale
$875,000
5960 S Archer Avenue, Chicago, IL 60638
Restaurant business with two apartments and ample parking.
Property Size4,750 SF
Price / SF$184.21
Days on Market278
Property Features for 5960 S Archer Avenue
General Information
Standard status
Active
Size
4,750 SF
Property subtype
Commercial
Zoning
COMMR
Taxes and HOA fees
Annual Taxes
$8,320
Building Details
Year Built
1955
Stories
2
Units
2
Listing Agency:
Midwest Real Estate Brokerage LLC
(773) 424-8207
Listed By:
Joel Mandujano · License #475139231
(773) 424-8207
Source:
Midwestrealestate
Added: Nov 18, 2025
Changed: Aug 23
Last Checked: Aug 16 at 6:31AM
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 Midwest Real Estate Brokerage LLC
Investment Insights
Based on property information with market context.
This property presents an opportunity to own a restaurant business along with two apartments, offering potential residential income. Each apartment currently generates $1650 in rent. Additionally, the property includes a 2-car garage with each space renting for $100. The property features ample parking space for approximately 25 cars. The sale includes the building, business license, all current inventory, and fixtures. The building and restaurant are reported to be in great condition. The property is located in a prime location.
Key Highlights
- Restaurant business included with building sale.
- Prime location with ample parking for 25 cars.
- Two apartments provide rental income of $1650 each.
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
$79,182
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
9.05%
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%
$1,583,640
$1.6M
Cap Rate 7%
$1,131,171
$1.1M
Cap Rate 9%
$879,800
$879.8K
Market Conditions
NOI Build-Up for 4,750 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
$119.7K $25.20/SF
− Vacancy
−$6.6K −$1.39/SF
EGI
$113.1K $23.81/SF
− OpEx
−$33.9K −$7.14/SF
NOI
$79.2K $16.67/SF
Area
Chicago, IL
Vacancy
5.50%
Lease Rate
$25.20 /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%
$1,583,640
Cap Rate 7%
$1,131,171
Cap Rate 9%
$879,800
Alternative Uses
Best Use
Specialty Retail
$1.26M
$1.11M – $1.47M
NOI $88,407 @ 7.0% cap · market cap 10.10%
Second Best
Multifamily LT 5
$1.13M
$989.8K – $1.32M
NOI $79,182 @ 7.0% cap · market cap 9.05%
Theoretical Best
Office A
$2.24M
$1.96M – $2.61M
NOI $156,773 @ 7.0% cap · market cap 17.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
694
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60638, IL
56,928
Population
21,636
Households
2.6
Avg Household Size
39
Median Age
24%
College-Educated
84%
High-School Grad
11.1 sq mi
ZIP Area
5,129
Density / Sq Mi
$89,191
Median Household Income
$50,902
Median Earnings
$1,327
Median Rent
$283,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant business with two apartments and ample parking.
Where is this conventional restaurant located?
The property is located at 5960 S Archer Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Restaurant business included with building sale.; Prime location with ample parking for 25 cars.; Two apartments provide rental income of $1650 each.
