7900 Drexel Ave Chicago, IL 60619

Property Details for 7900 Drexel Ave

Year built

1925

Property size

9,952 SF

Property type

Retail properties

Property subtype

Office Properties & Spaces

Description

This exceptional mixed-use property at 7900 S Drexel Ave, Chicago, IL, presents a compelling value-add investment opportunity. The 9,952 square foot building, constructed in 1925 and extensively renovated in 2023, boasts 15 income-producing units: six apartments (five one-bedroom/one-bathroom and one two-bedroom/one-bathroom) and eight retail/office storefronts. Five apartments feature updated gas forced heat and hot water heaters. Storefronts are equipped with gas forced heat and central air conditioning. The current occupancy rate is 90%, generating a Net Operating Income (NOI) of $154,800, representing an 18.21% capitalization rate. A pro-forma NOI of $191,800 projects a 22.56% cap rate upon full occupancy. The asking price is $850,000, or $56,667 per unit, and $85.41 per square foot. Tenants are responsible for cooking gas, heat, and electricity; the owner covers insurance, taxes, and water. The property sits on a 7,841 square foot lot and is zoned 50. Its prime location near the Metra 79th St Station and Interstate provides excellent accessibility. An independent appraisal valued the property at $1,350,000, offering significant potential equity. The property is situated in an opportunity area, eligible for potential city grants and incentives. While three units (one storefront and two apartments) are currently vacant, filling these spaces will further increase profitability. All necessary repairs to address city violations will be completed before closing. This two-story building offers a strong return on investment in a desirable Chicago location.

Location Insight

City

Chicago

County

Cook

State

Illinois

Longitude

-87.6029

Latitude

41.7512