34-Room Exterior-Corridor
For Sale
$2,200,000
7621 S Cottage Grove Avenue, Chicago, IL 60619
Three-story lodging property includes a separate restaurant building and parking at the main level.
Property Size18,000 SF
Lot Size0.31 Acres
Price / SF$122.22
Days on Market207
Property Features for 7621 S Cottage Grove Avenue
General Information
Standard status
Active
Size
18,000 SF
Lot size
0.31 Acres
Property subtype
Business Opportunity
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$147,222
Building Details
Building Size
18,000 SF
Year Built
1974
Buildings
2
Stories
3
Listing Agency:
Century 21 Circle
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(773) 465-4200
Source:
Ozmentrealestate
Added: Jan 16
Changed: Aug 11
Last Checked: Aug 11 at 2:12PM
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 three-story motel contains 34 rooms in an exterior-corridor layout, with a separate restaurant building positioned at the front of the property. Constructed in 1974, the improvements include 18,000 square feet of total building area on 13,392 square feet of land. Main-level parking serves the lodging property, and the motel operates with a non-franchise license.
The property is located in Chicago’s Chatham neighborhood on the South Side, within walking distance of retail, services, and neighborhood amenities. It sits approximately 1 mile east of the Dan Ryan Expressway and about 3 miles from the Obama Presidential Library. The site is also within the Greater Chatham Initiative’s 87th Street Corridor Improvement Zone.
The property is located in Chicago’s Chatham neighborhood on the South Side, within walking distance of retail, services, and neighborhood amenities. It sits approximately 1 mile east of the Dan Ryan Expressway and about 3 miles from the Obama Presidential Library. The site is also within the Greater Chatham Initiative’s 87th Street Corridor Improvement Zone.
Key Highlights
- 34‑room motel with a three‑story exterior‑corridor configuration
- 18,000 Sq. ft. total building area on 13,392 Sq. ft. of land
- Separate restaurant building located at the front of the property
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
$135,432
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
6.16%
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%
$2,708,640
$2.7M
Cap Rate 7%
$1,934,743
$1.9M
Cap Rate 9%
$1,504,800
$1.5M
Market Conditions
NOI Build-Up for 18,000 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
$324.0K $18.00/SF
− Vacancy
−$38.9K −$2.16/SF
EGI
$285.1K $15.84/SF
− OpEx
−$149.7K −$8.32/SF
NOI
$135.4K $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%
$2,708,640
Cap Rate 7%
$1,934,743
Cap Rate 9%
$1,504,800
Alternative Uses
Best Use
Specialty Retail
$4.79M
$4.19M – $5.58M
NOI $335,016 @ 7.0% cap · market cap 15.23%
Second Best
Hotel Hospitality
$1.93M
$1.69M – $2.26M
NOI $135,432 @ 7.0% cap · market cap 6.16%
Theoretical Best
Office A
$8.49M
$7.43M – $9.90M
NOI $594,086 @ 7.0% cap · market cap 27.00%
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
1,163
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60619, IL
63,303
Population
33,547
Households
1.9
Avg Household Size
43
Median Age
27%
College-Educated
90%
High-School Grad
6.1 sq mi
ZIP Area
10,378
Density / Sq Mi
$43,403
Median Household Income
$35,672
Median Earnings
$1,054
Median Rent
$213,000
Median Home Value
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- The Woodlawn — 1200 E 79th St, Chicago, IL 60619
- Empire Motel — 7621 S Cottage Grove Ave, Chicago, IL 60619
- Barbara Ann's Motel — 7621 S Cottage Grove Ave, Chicago, IL 60619
- East of the Ryan — 914 E 79th St, Chicago, IL 60619
- Mommie-o — 8222 s calumet ave, chicago, il 60619
Frequently Asked Questions
What type of property is this?
Motel - Three-story lodging property includes a separate restaurant building and parking at the main level.
Where is this motel located?
The property is located at 7621 S Cottage Grove Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: 34‑room motel with a three‑story exterior‑corridor configuration; 18,000 Sq. ft. total building area on 13,392 Sq. ft. of land; Separate restaurant building located at the front of the property
