Chicago Motel Near Obama
For Sale
$3,500,000
6535 S King Drive, Chicago, IL 60637
Business Opportunity, Chicago, IL
Property Size20,200 SF
Lot Size0.40 Acres
Price / SF$173.27
Days on Market181
Property Features for 6535 S King Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
COMMR
Directions
Expressway-63rd east-King Dr. south-address. South Chicago Ave.-King Dr. North to address.
Subdivision
CHI - Woodlawn
Standard status
Active
APN
20222160150000
Lot size
0.40 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
145605
Utilities
Cooling system
Central Air
Building Details
Floors in Building
2
Building materials
Concrete
Listing Agency:
Century 21 Circle · Coldwell Banker Real Estate
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(312) 513-4490
Added: Feb 20
Changed: Aug 20
Last Checked: Aug 20 at 11:06AM
MLS# 12571609
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2-story, California-style motel, constructed in 1971, features 53 rooms within approximately 20,200 square feet of building space, situated on an approximately 18,000-square-foot lot with on-site parking. Located in Chicago's Woodlawn neighborhood on the South Side, the property is near Hyde Park and Englewood. It is located within 2 miles of the future Barack Obama Presidential Library and close to the University of Chicago, Jackson Park, and the Museum of Science and Industry. The location also offers convenient access to neighborhood retail, transit options, including the CTA King Drive Station, and is approximately 1 mile east of the Dan Ryan Expressway. The surrounding area is undergoing redevelopment, including the upcoming Barack Obama Presidential Library, scheduled to open in Spring 2026. Zoned C1-2 Commercial, the property allows for a variety of uses, including retail, auto services, warehouse, mixed-use, and residential above the ground floor.
Key Highlights
- Located near the future Barack Obama Presidential Library (opening Spring 2026) in a redeveloping area.
- 53‑room motel in Chicago's Woodlawn neighborhood, near Hyde Park and Englewood.
- Zoned C1‑2 Commercial, allowing for diverse uses.
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
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Frequently Asked Questions
What type of property is this?
Motel - 53-room motel in Chicago's Woodlawn neighborhood, near Hyde Park.
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: Located near the future Barack Obama Presidential Library (opening Spring 2026) in a redeveloping area.; 53‑room motel in Chicago's Woodlawn neighborhood, near Hyde Park and Englewood.; Zoned C1‑2 Commercial, allowing for diverse uses.
