Absentee-Owned Value-Add Retail | Fully Leased | 12%+ Pro Forma Cap
$895,000
3217-3229 West Montrose Avenue, Chicago, IL 60618
6.05
Cap Rate
54,140
NOI
Details:
Highlights:
- Massive Gross-to-NNN Upside: Current leases are below-market and gross. Transitioning to standard Triple-Net (NNN) leases provides an immediate path to a projected 12%+ pro forma cap rate.
- Massive Flexibility (Majority MTM): With five of the six suites currently month-to-month, an investor can instantly implement a mark-to-market business plan on nearly the entire footprint.
- Ideal Owner/User Asset: A local business owner can quickly vacate five of the six suites for their own use while retaining in-place income from the remaining tenant, easily satisfying SBA occupancy requirements for owner-user financing.
- Highly Constrained Submarket: Located in the high-demand Northwest City submarket, which features a historically low 3.2% retail vacancy rate.
- Zero New Competition: With 0 SF of retail space currently under construction in the submarket, existing storefronts command premium pricing and demand.
- Phenomenal Foot Traffic: Features a perfect 100/100 pedestrian-friendly score and strong daily-needs consumer demographics in a vibrant Chicago neighborhood.
Description:
Located in Chicago’s highly constrained Northwest City submarket, 3217 W Montrose Ave presents an exceptional, high-yield investment or owner/user opportunity. Currently managed by a retiring, out-of-state absentee owner, the 4,000 SF storefront property is 100% occupied but features predominantly a month-to-month rent roll. This deferred management approach has left significant money on the table, creating the ultimate blank slate for a local operator, investor, or business owner to step in and immediately reposition the asset.
The true value-add potential lies in the outdated lease structure. The current absentee owner has maintained below-market, gross leases. By utilizing the month-to-month flexibility to transition the majority of the building to standard NNN leases at the market rate of $28.00/SF base rent—and recapturing property taxes, insurance, and operating expenses—a hands-on new owner can aggressively boost the Net Operating Income. Executing this straightforward Gross-to-NNN conversion creates a clear path to a 12%+ Pro Forma Cap Rate.
The underlying real estate is exceptionally strong. The property boasts an "Excellent Location" score of 79 and a flawless "Pedestrian Friendly" score of 100, ensuring heavy foot traffic and visibility. Furthermore, the Northwest City retail submarket is incredibly tight, featuring a remarkably low 3.2% vacancy rate with absolutely zero new retail projects currently under construction. This lack of new supply severely limits tenant options, providing local landlords with tremendous pricing power, high tenant retention, and long-term stability.
Whether you are a local investor looking for a rapid mark-to-market value-add play, or a business owner seeking SBA financing to secure your own highly visible storefront, 3217 W Montrose Ave offers immediate,
Located in Chicago’s Albany Park neighborhood along the high-visibility Montrose Avenue corridor. Surrounded by dense residential housing and steps from public transit.
Six-unit street retail strip center along Montrose Ave with high visibility, walkable location, and direct access to public transit. All units are individually metered. Excellent tenant mix with strong value-add upside.
Documents:
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| 3217-3229_W_Montrose_Ave_Chicago_OM__1_.pdf |
Location
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