Mixed-Use Property with
For Sale
$420,000
6551 West 63rd Street, Chicago, IL 60638
Front commercial space, residential quarters, basement storage, and a separate garage support multiple occupancy arrangements.
Property Size2,850 SF
Price / SF$147.37
Days on Market149
Property Features for 6551 West 63rd Street
General Information
Standard status
Active
Size
2,850 SF
Total Parking Spaces
2
Zoning
COMMR
Net Operating Income
$60,000
Taxes and HOA fees
Annual Taxes
$4,220
Amenities
private bathroom
full basement
detached 2-car garage
Building Details
Year Built
1962
Buildings
2
Stories
1
Tenancy
Multi
Listing Agency:
REMAX Legends
(630) 216-8000
Listed By:
Nazire Tahiri · License #475203950
(630) 216-8000
Source:
Compass
Added: Apr 5
Changed: Aug 30
Last Checked: Aug 31 at 12:33AM
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 REMAX Legends
Investment Insights
Based on property information with market context.
This mixed-use property combines a street-facing commercial area with a residential component and supporting improvements. The commercial portion includes a private bathroom and is occupied by a hair salon under a month-to-month lease. Behind it, the residence offers three bedrooms, one bathroom, and a full basement; it is currently vacant and available for occupancy or leasing. A separate two-vehicle garage is also included.
The 2,850 SF property was built in 1962 and is located at 6551 West 63rd Street in Chicago’s Clearing neighborhood. The site was previously used for automotive sales, adding relevant operating history for commercial users evaluating the property. Its mixed commercial and residential configuration provides an existing combination of leased and vacant space.
The 2,850 SF property was built in 1962 and is located at 6551 West 63rd Street in Chicago’s Clearing neighborhood. The site was previously used for automotive sales, adding relevant operating history for commercial users evaluating the property. Its mixed commercial and residential configuration provides an existing combination of leased and vacant space.
Key Highlights
- 2,850 SF mixed‑use property at 6551 West 63rd Street in Chicago
- Front commercial area with private bathroom and month‑to‑month hair salon lease
- Rear residential unit includes 3 bedrooms, 1 bathroom, and a full basement
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
$17,872
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
4.26%
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%
$357,440
$357.4K
Cap Rate 7%
$255,314
$255.3K
Cap Rate 9%
$198,578
$198.6K
Market Conditions
NOI Build-Up for 2,850 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
$26.9K $9.43/SF
− Vacancy
−$1.3K −$0.47/SF
EGI
$25.5K $8.96/SF
− OpEx
−$7.7K −$2.69/SF
NOI
$17.9K $6.27/SF
Area
Chicago, IL
Vacancy
5.00%
Lease Rate
$9.43 /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%
$357,440
Cap Rate 7%
$255,314
Cap Rate 9%
$198,578
Alternative Uses
Best Use
Mixed Use
$687.1K
$601.2K – $801.6K
NOI $48,094 @ 7.0% cap · market cap 11.45%
Second Best
Retail
$563.3K
$492.9K – $657.2K
NOI $39,429 @ 7.0% cap · market cap 9.39%
Theoretical Best
Office A
$1.34M
$1.18M – $1.57M
NOI $94,064 @ 7.0% cap · market cap 22.40%
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
574
Businesses Nearby
13k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 76%
Dining 24%
7-Eleven
Shops & Services
6,023 visits/mo
0.3 miles
BMO Harris Bank
Shops & Services
4,134 visits/mo
0.3 miles
SUBWAY
Dining
3,240 visits/mo
0.1 miles
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 Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Front commercial space, residential quarters, basement storage, and a separate garage support multiple occupancy arrangements.
Where is this mixed-use property located?
The property is located at 6551 West 63rd Street Chicago, IL.
What is the asking price?
The asking price for this property is $420,000.
What are key features of this property?
This property features: 2,850 SF mixed‑use property at 6551 West 63rd Street in Chicago; Front commercial area with private bathroom and month‑to‑month hair salon lease; Rear residential unit includes 3 bedrooms, 1 bathroom, and a full basement
