Renovated Pilsen Mixed-Use
For Sale
Contact for pricing
965 W 18th Street, Chicago, IL 60608
Five-unit building with residential and commercial spaces in Chicago.
Property Size6,025 SF
Price / SF$243.82
Days on Market197
Property Features for 965 W 18th Street
General Information
Standard status
Active
Size
6,025 SF
Class
B
Property subtype
Multifamily
Zoning
C1-2
Building Details
Year Built
1885
Listing Agency:
EXP Realty
(773) 630-9205
Listed By:
Jake Fugman · License #IL 475.181407
Source:
Crexi
Added: Jan 29
Changed: Aug 8
Last Checked: Jul 19 at 4:16AM
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 EXP Realty
Investment Insights
Based on property information with market context.
This fully renovated five-unit masonry brick mixed-use building is situated on Pilsen's 18th Street retail corridor. The property features two three-bedroom, two-bath residential apartments and three built-out commercial units, providing strong in-place income within a prime Chicago neighborhood. Gut renovated in 2017, the building was stripped to the floor joists and completely rebuilt, showcasing updated interiors throughout. The residential units include modern kitchens with stainless steel appliances, exposed brick accents, hardwood flooring, and excellent natural light. Extensive additional capital improvements have been completed, including a new coach house roof, parapet wall reconstruction, Hardy board siding, masonry updates, replacement of multiple water heaters, added windows and lighting, and a Doorbird entry system. All three commercial spaces were built out under current ownership, which also secured a new long-term tenant, Vela Spa. The property is ideally located near UIC, downtown Chicago, Cinespace Film Studios, and various popular restaurants, retail establishments, and entertainment venues in Pilsen. It also offers easy access to Metra and CTA transit. The property generates $149,352 in annual income, presenting investors with a turnkey opportunity in a sought-after mixed-use corridor. The property size is 6,025 square feet.
Key Highlights
- Fully renovated in 2017 with updated interiors and additional capital improvements.
- Strong in‑place annual income of $149,352, offering a turnkey investment opportunity.
- Prime location on Pilsen's 18th Street retail corridor, near UIC, downtown Chicago, and popular amenities.
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
$101,672
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
6.92%
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%
$2,033,440
$2.0M
Cap Rate 7%
$1,452,457
$1.5M
Cap Rate 9%
$1,129,689
$1.1M
Market Conditions
NOI Build-Up for 6,025 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
$180.8K $30.00/SF
− Vacancy
−$18.1K −$3.00/SF
EGI
$162.7K $27.00/SF
− OpEx
−$61.0K −$10.13/SF
NOI
$101.7K $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%
$2,033,440
Cap Rate 7%
$1,452,457
Cap Rate 9%
$1,129,689
Alternative Uses
Best Use
Mixed Use
$1.45M
$1.27M – $1.69M
NOI $101,672 @ 7.0% cap · market cap 6.92%
Second Best
Apartment 5plus
$1.32M
$1.15M – $1.54M
NOI $92,358 @ 7.0% cap · market cap 6.29%
Theoretical Best
Office A
$2.84M
$2.49M – $3.31M
NOI $198,854 @ 7.0% cap · market cap 13.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,607
Businesses Nearby
Explore this area
Business Placement
Demographics for 60608, IL
75,770
Population
32,617
Households
2.3
Avg Household Size
34
Median Age
34%
College-Educated
77%
High-School Grad
6.2 sq mi
ZIP Area
12,221
Density / Sq Mi
$70,704
Median Household Income
$42,211
Median Earnings
$1,208
Median Rent
$341,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Five-unit building with residential and commercial spaces in Chicago.
Where is this mixed-use property located?
The property is located at 965 W 18th Street Chicago, IL.
What is the asking price?
The asking price for this property is $1,469,000.
What are key features of this property?
This property features: Fully renovated in 2017 with updated interiors and additional capital improvements.; Strong in‑place annual income of $149,352, offering a turnkey investment opportunity.; Prime location on Pilsen's 18th Street retail corridor, near UIC, downtown Chicago, and popular amenities.
