Two-Story Exterior-Corridor
For Sale
$3,500,000
6535 S King Drive, Chicago, IL 60637
Main-level parking serves a hospitality property near transit, retail, universities, and cultural destinations.
Property Size20,200 SF
Lot Size0.41 Acres
Price / SF$173.27
Days on Market170
Property Features for 6535 S King Drive
General Information
Standard status
Active
Size
20,200 SF
Lot size
0.41 Acres
Property subtype
Business Opportunity
Zoning
COMMR
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$145,605
Building Details
Building Size
20,200 SF
Year Built
1971
Buildings
1
Stories
2
Listing Agency:
Century 21 Circle
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(773) 465-4200
Source:
Midwestrealestate
Added: Feb 20
Changed: Aug 8
Last Checked: Aug 8 at 2:33AM
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 Century 21 Circle
Investment Insights
Based on property information with market context.
This 53-room motel occupies a two-story, California-style exterior-corridor building constructed in 1971. The improvements contain approximately 20,200 square feet, with about 18,000 square feet of land and on-site parking at the main level. The property operates under the Best Motel by OYO name.
The motel is positioned in Chicago’s Woodlawn neighborhood on the South Side, near Hyde Park and Englewood. It is within 2 miles of the Obama Presidential Library, close to the University of Chicago and the Museum of Science and Industry, and near neighborhood retail and CTA King Drive Station. The Dan Ryan Expressway is approximately 1 mile east, with downtown Chicago within several miles.
The motel is positioned in Chicago’s Woodlawn neighborhood on the South Side, near Hyde Park and Englewood. It is within 2 miles of the Obama Presidential Library, close to the University of Chicago and the Museum of Science and Industry, and near neighborhood retail and CTA King Drive Station. The Dan Ryan Expressway is approximately 1 mile east, with downtown Chicago within several miles.
Key Highlights
- 53‑room motel with a two‑story exterior‑corridor layout
- Approximately 20,200 building Sq ft. on about 18,000 Sq ft. of land
- Built in 1971 with main‑level on‑site 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
$151,985
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
4.34%
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%
$3,039,700
$3.0M
Cap Rate 7%
$2,171,214
$2.2M
Cap Rate 9%
$1,688,722
$1.7M
Market Conditions
NOI Build-Up for 20,200 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
$363.6K $18.00/SF
− Vacancy
−$43.6K −$2.16/SF
EGI
$320.0K $15.84/SF
− OpEx
−$168.0K −$8.32/SF
NOI
$152.0K $7.52/SF
Area
Chicago, IL
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$3,039,700
Cap Rate 7%
$2,171,214
Cap Rate 9%
$1,688,722
Alternative Uses
Best Use
Hotel Hospitality
$2.17M
$1.90M – $2.53M
NOI $151,985 @ 7.0% cap · market cap 4.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.52M
$8.33M – $11.11M
NOI $666,697 @ 7.0% cap · market cap 19.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
557
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60637, IL
53,555
Population
26,717
Households
2
Avg Household Size
31
Median Age
37%
College-Educated
89%
High-School Grad
4.5 sq mi
ZIP Area
11,901
Density / Sq Mi
$42,080
Median Household Income
$33,227
Median Earnings
$1,170
Median Rent
$243,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Main-level parking serves a hospitality property near transit, retail, universities, and cultural destinations.
Where is this motel located?
The property is located at 6535 S King Drive Chicago, IL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 53‑room motel with a two‑story exterior‑corridor layout; Approximately 20,200 building Sq ft. on about 18,000 Sq ft. of land; Built in 1971 with main‑level on‑site parking
