Two-Story 37-Room
For Sale
$2,399,000
9112 S Cottage Grove Avenue, Chicago, IL 60619
Business Opportunity, Chicago, IL
Property Size12,000 SF
Lot Size0.42 Acres
Price / SF$199.92
Days on Market181
Property Features for 9112 S Cottage Grove Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Expressway-87th east-Cottage Grove Ave. South - address Expressway-103rd St. _ Cottage Grove Ave. Nort- address
Subdivision
CHI - Chatham
Standard status
Active
APN
25034030390000
Lot size
0.42 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
160176
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# 12571884
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 two-story motel property is a 37-room exterior corridor motel built in 1971, with central air and concrete construction. The building provides about 12,000 SF of gross building area, with approximately 18,000 SF of land on a 0.4167-acre site. The property offers standard amenities and convenient main-level parking.
Set in Chicago’s Greater Grand Crossing community on the South Side, the site is just south of Woodlawn and near the Cottage Grove commercial corridor. It is about 1 mile from the Dan Ryan Expressway and offers public transportation access via the Metra Electric Line at the 91st St. station, along with CTA bus routes connecting to downtown Chicago and surrounding neighborhoods. The property is also about 3 miles south of the Obama Presidential Library site near 63rd & Stony Island.
Zoned B3-2 Commercial, the site supports a wide range of retail, warehouse, mixed-use, and residential-above-retail uses, offering flexibility for repositioning or redevelopment. It also qualifies for City of Chicago and local grant initiatives supporting business and property improvements.
Set in Chicago’s Greater Grand Crossing community on the South Side, the site is just south of Woodlawn and near the Cottage Grove commercial corridor. It is about 1 mile from the Dan Ryan Expressway and offers public transportation access via the Metra Electric Line at the 91st St. station, along with CTA bus routes connecting to downtown Chicago and surrounding neighborhoods. The property is also about 3 miles south of the Obama Presidential Library site near 63rd & Stony Island.
Zoned B3-2 Commercial, the site supports a wide range of retail, warehouse, mixed-use, and residential-above-retail uses, offering flexibility for repositioning or redevelopment. It also qualifies for City of Chicago and local grant initiatives supporting business and property improvements.
Key Highlights
- Zoned B3‑2 Commercial with retail, warehouse, mixed‑use, and residential‑above‑retail flexibility
- Built in 1971: two‑story, exterior corridor motel with 37 rooms
- About 12,000 SF building area with approximately 18,000 SF land on a 0.4167‑acre site
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
$90,288
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
3.76%
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%
$1,805,760
$1.8M
Cap Rate 7%
$1,289,829
$1.3M
Cap Rate 9%
$1,003,200
$1.0M
Market Conditions
NOI Build-Up for 12,000 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
$216.0K $18.00/SF
− Vacancy
−$25.9K −$2.16/SF
EGI
$190.1K $15.84/SF
− OpEx
−$99.8K −$8.32/SF
NOI
$90.3K $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%
$1,805,760
Cap Rate 7%
$1,289,829
Cap Rate 9%
$1,003,200
Alternative Uses
Best Use
Hotel Hospitality
$1.29M
$1.13M – $1.50M
NOI $90,288 @ 7.0% cap · market cap 3.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.66M
$4.95M – $6.60M
NOI $396,058 @ 7.0% cap · market cap 16.51%
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
770
Businesses Nearby
Under-served
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Zoned B3-2 with central air in a two-story 37-room motel with main-level parking.
Where is this motel located?
The property is located at 9112 S Cottage Grove Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $2,399,000.
What are key features of this property?
This property features: Zoned B3‑2 Commercial with retail, warehouse, mixed‑use, and residential‑above‑retail flexibility; Built in 1971: two‑story, exterior corridor motel with 37 rooms; About 12,000 SF building area with approximately 18,000 SF land on a 0.4167‑acre site
