53-Room Exterior-Corridor
For Sale
$3,500,000
6535 S King Drive, Chicago, IL 60637
Two-story motel with on-site parking, commercial zoning, and proximity to University of Chicago, transit, and major cultural destinations.
Property Size20,200 SF
Lot Size0.41 Acres
Price / SF$173.27
Days on Market29
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) 983-1553
Listed By:
Mark Ahmad · License #471007186
Source:
Jjillrealtygroup
Added: Jul 31
Changed: Aug 27
Last Checked: Aug 28 at 11:31AM
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 Century 21 Circle
Investment Insights
Based on property information with market context.
This 53-room motel comprises a two-story, California-style exterior-corridor building constructed in 1971. The property contains approximately 20,200 square feet of building area on about 18,000 square feet of land, with parking located on the main level.
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 Barack Obama Presidential Library, close to the University of Chicago, Jackson Park, the Museum of Science and Industry, neighborhood retail, and CTA King Drive Station. The Dan Ryan Expressway is approximately 1 mile east, with downtown Chicago several miles away.
C1-2 Commercial zoning permits a range of uses identified in the source, including retail, auto services, warehouse, mixed-use, and residential above the ground floor. Nearby redevelopment includes the Barack Obama Presidential Library, scheduled to open Spring 2026.
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 Barack Obama Presidential Library, close to the University of Chicago, Jackson Park, the Museum of Science and Industry, neighborhood retail, and CTA King Drive Station. The Dan Ryan Expressway is approximately 1 mile east, with downtown Chicago several miles away.
C1-2 Commercial zoning permits a range of uses identified in the source, including retail, auto services, warehouse, mixed-use, and residential above the ground floor. Nearby redevelopment includes the Barack Obama Presidential Library, scheduled to open Spring 2026.
Key Highlights
- 53 rooms in a two‑story motel built in 1971
- Approximately 20,200 square feet of building area on about 18,000 square feet of land
- California‑style exterior‑corridor design 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
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
869
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Rae’s Palace — 205 E 71st St, Chicago, IL 60619
- ALL OCCASIONS R US — 637 E 71st St, Chicago, IL 60619
- 4 bedroom/2 full bath/2 half bath Chicago townhome — 7009 s martin luther king dr, chicago, il 60637
- Villa Christina — 6832 S Calumet Ave, Chicago, IL 60637
- 360 Co-working & Event space — 360 E 69th St, Chicago, IL 60637
Frequently Asked Questions
What type of property is this?
Motel - Two-story motel with on-site parking, commercial zoning, and proximity to University of Chicago, transit, and major 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 rooms in a two‑story motel built in 1971; Approximately 20,200 square feet of building area on about 18,000 square feet of land; California‑style exterior‑corridor design with main‑level on‑site parking
