1528 E 74th Pl Immeuble residentiel 6 lots 585 521 € (97 587 €/Lot) Taux de capitalisation 8,37 % Chicago, IL 60619

Presented by the RST Team & Midwest Investment Advisors with KW Commercial & Keller Williams ONEChicago
RST Team & Midwest Investment Advisors is pleased to present 1528 E. 74th Place, a six-unit multifamily investment opportunity located in Chicago’s South Shore submarket. Offered at $680,000, the property provides immediate cash flow, below-market rents and a defined value-add strategy supported by a $25,000 estimated renovation budget, equal to the estimated remaining improvement budget.
The 7,992-square-foot property consists of 5 one-bedroom/one-bathroom units and 1 two-bedroom/one-bathroom unit, with residential units averaging 950 square feet. Units 2E, 3W and 3E have been renovated, while Units 1E, 1W and 2W remain unrenovated. Unit 3E is leased at a discounted $1,350 per month because the tenant also serves as the property manager.
Current monthly rent totals $8,550, or an average of $1,425 per unit. Stabilized underwriting projects average rents of $1,700 per unit, increasing monthly rent to $10,200 and annual scheduled rental income to $122,400. This represents potential additional base rent of $23,400 annually, excluding laundry income.
Current net operating income is estimated at $56,941, generating a 8.37% going-in capitalization rate. Following completion of the remaining renovations and rental stabilization, pro forma NOI is projected to increase to $69,905. Based on the combined acquisition price and estimated $25,000 renovation budget, the property generates a projected 9.92% stabilized capitalization rate on total cost.
Investment Highlights
$680,000 offering price
$25,000 estimated renovation budget
7,992 gross building square feet
6 one-bedroom units and 1 two-bedroom unit
3 renovated and 3 unrenovated units
950 square feet per residential unit
Current rent: $8,550 monthly | $1,425 average per unit
Pro forma rent: $10,200 monthly | $1,700 average per unit
Current NOI: $56,941
Pro forma NOI: $69,905
8.37% current cap rate | 9.92% stabilized cap rate on total cost
$113,333 per unit | $85 per gross square foot
The value-add strategy centers on renovating the 3 remaining units and repositioning rents toward prevailing market levels. Current leasing strategy in place to backfill the available units 1E & 1W at $1,450. The spacious layouts include tandem rooms and sunrooms that may offer future bedroom-conversion opportunities, subject to architectural review and municipal approval. Additional upside may also be available through the future repositioning of Unit 3E, which is currently rented below market in consideration of property-management services.
Based on illustrative financing at 70% loan-to-value, the acquisition would include a $476,000 loan and $204,000 acquisition-equity contribution. Assuming a 6.40% interest rate and 30-year amortization, annual debt service is $35,729. Current annual cash flow is estimated at $21,213, representing an 10.40% cash-on-cash return. Stabilized annual cash flow is projected at $34,176, representing an estimated 14.92% cash-on-cash return on total equity inclusive of the renovation budget.