2338-40 South Kedzie Avenue
- 9-unit mixed-use building (7 apartments + 2 commercial) on approx. 6,250 SF, offered at $999,000 ($111,000/unit) at a 7.23% in-place cap rate
- 2 studios, 2 one-bed and 3 two-bed apartments, plus approx. 1,500 SF bakery and tire shop spaces
- Separate gas forced-air furnaces and hot water tanks, updated separate electric panels, updated plumbing, roof approx. 10-12 years old
- Apartment rents 37-56% below market; stabilized NOI of $95,246 (9.53% cap) near the 26th Street corridor and CTA Pink Line
Property Description
Essex Three-Twelve is pleased to offer 2338-40 S Kedzie Ave, a 9-unit mixed-use building in Chicago’s Little Village neighborhood, at $999,000, or $111,000 per unit. Built in 1906, the three-story masonry building has seven apartments above a ground-floor storefront, with a side lot and a tire shop. It offers a 7.23% in-place cap rate and reaches 9.53% by re-leasing the apartments at market rents. The residential mix includes two studios, two one-beds, and three two-beds. The storefront is leased to a bakery, and the side lot and rear garage to a tire shop. Together they contribute $3,500 per month, about 37% of gross income. The apartments average about $836 per month, 21-33% below the $1,000 studio, $1,100 one-bed and $1,300 two-bed rents supported by nearby comparables. Bringing them to market lifts NOI 32%, from $72,231 to $95,246, with no capital improvements needed. Little Village is positioned for long-term growth. About a mile south, the Focal Point Community Campus will redevelop 30 acres at 31st Street and Kedzie Avenue into a mixed-use campus anchored by a new Saint Anthony Hospital. The project will bring hundreds of permanent jobs and added renter demand to the Kedzie corridor. A new owner can capture the immediate mark-to-market gain and benefit from continued rent growth and appreciation as the campus is completed.
Key Property Information
| Listing Status: | Available |
|---|---|
| Listing Type: | Call for offers |
| Property Types: | Apartment Buildings |
| Price: | $999,000 |
| No. of Units: | 9 |
| Year Built: | 1906 |
| Lot Size: | 0.14 Acres |
| Opportunity Zone: | No |
| Price per unit: | $111,000 |
| Property Website | Click Here |
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