2-Story 37-Room
For Sale
$2,399,000
9112 S Cottage Grove Avenue, Chicago, IL 60619
A 37-room, two-story exterior-corridor motel built in 1971 with main-level parking on commercial land.
Property Size11,848 SF
Lot Size0.41 Acres
Price / SF$199.92
Days on Market187
Property Features for 9112 S Cottage Grove Avenue
General Information
Standard status
Active
Size
11,848 SF
Lot size
0.41 Acres
Property subtype
Business Opportunity
Zoning
B3-2
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$160,176
Building Details
Building Size
11,848 SF
Year Built
1971
Stories
2
Listing Agency:
Century 21 Circle
(773) 465-4200
Listed By:
Mark Ahmad · License #471007186
(773) 465-4200
Source:
Allinonerealestateco
Added: Feb 20
Changed: Aug 23
Last Checked: Aug 26 at 9:12AM
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 two-story motel property features an exterior-corridor layout with 37 rooms and standard amenities. Built in 1971, it includes main-level parking for guest access and sits on approximately 18,000 square feet of land.
The property is located in Chicago’s South Side Greater Grand Crossing community, near the Cottage Grove commercial corridor and about one mile from the Dan Ryan Expressway. Public transportation includes access to the Metra Electric Line at the 91st St. station and CTA bus routes connecting to downtown Chicago and surrounding neighborhoods.
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. The listing also notes eligibility for City of Chicago and local grant initiatives supporting business and property improvements.
The property is located in Chicago’s South Side Greater Grand Crossing community, near the Cottage Grove commercial corridor and about one mile from the Dan Ryan Expressway. Public transportation includes access to the Metra Electric Line at the 91st St. station and CTA bus routes connecting to downtown Chicago and surrounding neighborhoods.
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. The listing also notes eligibility for City of Chicago and local grant initiatives supporting business and property improvements.
Key Highlights
- 2‑story, 37‑room exterior‑corridor motel built in 1971 with main‑level parking
- Approx. 12,000 building SF on about 18,000 SF of land
- Zoned B3‑2 Commercial, allowing retail, warehouse, mixed‑use, and residential‑above‑retail uses
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Motel - A 37-room, two-story exterior-corridor motel built in 1971 with main-level parking on commercial land.
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: 2‑story, 37‑room exterior‑corridor motel built in 1971 with main‑level parking; Approx. 12,000 building SF on about 18,000 SF of land; Zoned B3‑2 Commercial, allowing retail, warehouse, mixed‑use, and residential‑above‑retail uses
