Mixed-Use Property with Income
For Sale
Contact for pricing
8714 S COMMERCIAL Avenue, Chicago, IL 60617
Mixed-use property with retail and residential units, value-add opportunity.
Property Size1,100 SF
Price / SF$409.09
Days on Market167
Property Features for 8714 S COMMERCIAL Avenue
General Information
Standard status
Active
Size
1,100 SF
Property subtype
Mixed Use
Building Details
Year Built
1899
Stories
3
Units
6
Listing Agency:
KW Commercial Chicago - Lincoln Park
(773) 946-8816
Listed By:
Tony Hardy · License #IL 475.139834
Source:
Crexi
Added: Mar 9
Changed: Aug 14
Last Checked: Aug 15 at 5:45AM
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 KW Commercial Chicago - Lincoln Park
Investment Insights
Based on property information with market context.
Located in Chicago's 60617 trade area, this mixed-use property at 8714 S. Commercial Ave presents a value-add opportunity with immediate income potential. The property features a 1,100 SF street-level retail storefront and five residential apartments, offering a balanced income profile. The investment strategy involves generating immediate revenue by leasing the move-in-ready units and storefront, followed by completing the remaining residential renovations to unlock full stabilized value. The residential component includes two move-in-ready 2BR/1BA units, one 2BR/1BA unit that is approximately 90% rehabilitated, and two 3BR/1BA units requiring completion. The near-finished 2BR/1BA unit requires paint and kitchen appliances, with an estimated $8,000 to complete. The two 3BR/1BA units require drywall, kitchen cabinetry, and appliances, with estimated completion costs of approximately $35,000 per unit. The retail storefront is move-in ready. The recommended strategy involves leasing the two ready residential units and the retail storefront to create immediate operating momentum. This income stream can support the completion of the nearly finished 2BR unit while planning the remaining 3BR unit finishes. This phased approach enables a buyer to stabilize the asset without requiring all capital to be deployed upfront prior to generating revenue. The property is suited for local and regional investors seeking to establish near-term income, control renovation exposure through phased deployment, and capture a meaningful spread between as-is basis and stabilized value.
Key Highlights
- Immediate income potential from leasing two move‑in‑ready apartments and the retail storefront.
- Clear path to stabilization through defined and finite renovation scope.
- Value‑add opportunity to increase property value by completing renovations on remaining units.
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
$18,563
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
4.13%
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%
$371,260
$371.3K
Cap Rate 7%
$265,186
$265.2K
Cap Rate 9%
$206,256
$206.3K
Market Conditions
NOI Build-Up for 1,100 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
$33.0K $30.00/SF
− Vacancy
−$3.3K −$3.00/SF
EGI
$29.7K $27.00/SF
− OpEx
−$11.1K −$10.13/SF
NOI
$18.6K $16.88/SF
Area
Chicago, IL
Vacancy
10.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$371,260
Cap Rate 7%
$265,186
Cap Rate 9%
$206,256
Alternative Uses
Best Use
Mixed Use
$265.2K
$232.0K – $309.4K
NOI $18,563 @ 7.0% cap · market cap 4.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$518.6K
$453.8K – $605.1K
NOI $36,305 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
920
Businesses Nearby
Explore this area
Business Placement
Demographics for 60617, IL
77,270
Population
35,031
Households
2.2
Avg Household Size
39
Median Age
20%
College-Educated
82%
High-School Grad
13.7 sq mi
ZIP Area
5,640
Density / Sq Mi
$51,237
Median Household Income
$36,926
Median Earnings
$1,010
Median Rent
$168,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with retail and residential units, value-add opportunity.
Where is this mixed-use property located?
The property is located at 8714 S COMMERCIAL Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: Immediate income potential from leasing two move‑in‑ready apartments and the retail storefront.; Clear path to stabilization through defined and finite renovation scope.; Value‑add opportunity to increase property value by completing renovations on remaining units.
