Mixed-Use Building with 4
For Sale
$499,000
6237 South Ashland Avenue, Chicago, IL 60636
Commercial zoning supports a ground-floor storefront with occupied residential units.
Property Size2,775 SF
Price / SF$179.82
Days on Market224
Property Features for 6237 South Ashland Avenue
General Information
Standard status
Active
Size
2,775 SF
Zoning
COMMR
Net Operating Income
$28,260
Taxes and HOA fees
Annual Taxes
$4,432
Building Details
Year Built
1896
Buildings
1
Stories
3
Tenancy
Multi
Listing Agency:
Baird & Warner
(708) 925-2953
Listed By:
Regina Washington · License #471010412
(708) 925-2953
Source:
Compass
Added: Jan 19
Changed: Aug 29
Last Checked: Aug 31 at 1:20AM
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 Baird & Warner
Investment Insights
Based on property information with market context.
This mixed-use property combines a 1,500-square-foot first-floor storefront with four occupied apartment units. The residential component includes two one-bedroom apartments and two two-bedroom apartments, creating a varied unit mix within the building. The property was constructed in 1896 and is zoned COMMR.
Located at 6237 South Ashland Avenue in Chicago, the building includes separate commercial and residential functions. Tenants are responsible for heat and electric, while the owner covers common-area costs and storefront utilities. The first-floor space formerly operated as an auto paint store.
Located at 6237 South Ashland Avenue in Chicago, the building includes separate commercial and residential functions. Tenants are responsible for heat and electric, while the owner covers common-area costs and storefront utilities. The first-floor space formerly operated as an auto paint store.
Key Highlights
- 1,500‑square‑foot first‑floor storefront
- Four occupied rental apartments: two 1‑bedroom and two 2‑bedroom units
- 2,775‑square‑foot property built in 1896
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
$42,538
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
8.52%
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%
$850,760
$850.8K
Cap Rate 7%
$607,686
$607.7K
Cap Rate 9%
$472,644
$472.6K
Market Conditions
NOI Build-Up for 2,775 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
$81.6K $29.40/SF
− Vacancy
−$4.2K −$1.53/SF
EGI
$77.3K $27.87/SF
− OpEx
−$34.8K −$12.54/SF
NOI
$42.5K $15.33/SF
Area
Chicago, IL
Vacancy
5.20%
Lease Rate
$29.40 /SF/Yr
Expense Ratio
45.00%
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%
$850,760
Cap Rate 7%
$607,686
Cap Rate 9%
$472,644
Alternative Uses
Best Use
Mixed Use
$669.0K
$585.4K – $780.5K
NOI $46,828 @ 7.0% cap · market cap 9.38%
Second Best
Multifamily LT 5
$660.8K
$578.2K – $771.0K
NOI $46,259 @ 7.0% cap · market cap 9.27%
Theoretical Best
Office A
$1.31M
$1.14M – $1.53M
NOI $91,588 @ 7.0% cap · market cap 18.35%
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
763
Businesses Nearby
Explore this area
Business Placement
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 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?
Mixed-use property - Commercial zoning supports a ground-floor storefront with occupied residential units.
Where is this mixed-use property located?
The property is located at 6237 South Ashland Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: 1,500‑square‑foot first‑floor storefront; Four occupied rental apartments: two 1‑bedroom and two 2‑bedroom units; 2,775‑square‑foot property built in 1896
