8554 S Maryland Avenue

Chicago,IL 60619

$ 1100000

- Bed

- Bath

- SqFt


Key Details

Property Type Commercial

Sub Type Multi Family 5+

Listing Status Active Under Contract

Purchase Type For Sale

MLS Listing ID 12112087

Year Built 1930

Annual Tax Amount $12,341

Tax Year 2022

Lot Dimensions 6300

Property Description

The multifamily property located at 8554-8556 S Maryland Ave, Chicago, IL 60619, presents a compelling investment opportunity in the Chatham submarket. Built in 1930, this Class C property spans four stories and encompasses a total gross building area of 18,000 square feet, translating to a price of $61 per square foot. The property is offered at a purchase price of $1,100,000, with a cost per unit of $68,750 for the 16 one-bedroom, one-bathroom units. Currently, the units are rented at an average of $782 per month, with pro forma projections suggesting increases to $895 within 3 to 6 months and $939 within 6 to 12 months. This rent escalation potential is a key factor in the financial attractiveness of the property. The initial net operating income (NOI) stands at $73,438, resulting in a cap rate of 6.68% and a gross rent multiplier (GRM) of 7.15. With the projected rent increases, the NOI is expected to rise to $89,343 within 3 to 6 months, improving the cap rate to 8.12% and the GRM to 6.40. Further improvements within 6 to 12 months could see the NOI reaching $95,047, with an enhanced cap rate of 8.64% and a GRM of 6.10. The property is strategically located in the vibrant Chatham neighborhood of Chicago, within close proximity to essential amenities and services. Demographic data within a three-mile radius indicates a population of 294,461, an average household income of $54,280, and a median home value of $161,157, underscoring the potential for strong rental demand. Overall, this investment opportunity combines attractive pricing, potential for significant rental income growth, and favorable financing terms, making it a promising addition to any real estate portfolio.

Location

State IL

County Cook

Interior

Fireplace N

Exterior

View Y/N true

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