34-Room Motel with
For Sale
$2,200,000
7621 S Cottage Grove Ave, Chicago, IL 60619
Three-story property includes a separate restaurant building and main-level parking.
Property Size18,000 SF
Price / SF$122.22
Days on Market242
Property Features for 7621 S Cottage Grove Ave
General Information
Standard status
Active
Size
18,000 SF
Property subtype
Commercial
Property Condition
Severity
Repairs Needed
Evidence
compelling rehab
Additional Details
Highway Access
Yes
Listing Agency:
Century 21 Circle
(773) 983-1553
Listed By:
Mark Ahmad · License #471007186
Source:
Illianahomesource
Added: Dec 29, 2025
Changed: Aug 28
Last Checked: Aug 28 at 12:19PM
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.
The property is a 34-room motel with a three-story California-style exterior-corridor design, constructed in 1974. A separate restaurant building sits at the front, while parking is located on the main level. The improvements total 18,000 square feet on 13,392 square feet of land, and the property operates under a non-franchise motel license.
Located at 7621 S Cottage Grove Ave in Chicago’s Chatham neighborhood, the property is within walking distance of retail, services, and neighborhood amenities. It is 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. City of Chicago grant and TIF programs are identified for facade improvements and full building renovation.
Located at 7621 S Cottage Grove Ave in Chicago’s Chatham neighborhood, the property is within walking distance of retail, services, and neighborhood amenities. It is 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. City of Chicago grant and TIF programs are identified for facade improvements and full building renovation.
Key Highlights
- 34‑room motel with a separate restaurant building
- 18,000 square feet of total building area on 13,392 square feet of land
- Three‑story California‑style exterior‑corridor design, built in 1974
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
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Frequently Asked Questions
What type of property is this?
Motel - Three-story property includes a separate restaurant building and main-level parking.
Where is this motel located?
The property is located at 7621 S Cottage Grove Ave 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 separate restaurant building; 18,000 square feet of total building area on 13,392 square feet of land; Three‑story California‑style exterior‑corridor design, built in 1974
