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7270 S South Shore Dr

$7,000,000

7270 South South Shore Drive, Chicago, IL 60649

Active
Last Updated: 09/08/2025

8.83

Cap Rate

40,000 sqft

Building Size

Details:
Cap Rate:    8.83%
Building Size:    40,000 sqft
Units:    53
Occupancy:    90%
Year Built:    1920
Floors:    6
Description:

The Midwest Investment Advisors with KW Commercial and Keller Williams ONEChicago are pleased to present the multifamily property at 7270 S. South Shore Dr. This asset represents a compelling investment opportunity in a vibrant community. The subject property is a 53-unit multifamily elevator building with a rooftop venue located in the heart of Chicago’s tree-lined South Shore neighborhood. It is conveniently situated fifteen minutes from the Loop and one block from the Lakefront, offering easy access to Lake Shore Drive. The property underwent a comprehensive gut renovation in 2018 and provides excellent in-place cash flow with potential for value-add investors. The property sits on a 20,555 square foot parcel.

 

Fully Renovated

The property was fully renovated in 2018, featuring new plumbing, electric, and tear-off roofs. All mechanicals, including copper plumbing, hot water tanks, boiler, and sewer line to the city, are new.

Modern Amenities

The building includes stainless steel appliances, dishwashers, and new baths in all units.

On-Site Management

There is a dedicated on-site building manager.

Laundry Facilities

The building has ten credit card operable laundry machines.

Common Areas

The property includes ample on-site office and maintenance space, three common bathrooms, and a 3,800 square foot penthouse common area lounge with a roof deck offering breathtaking lake views.

Rooftop Master Lease

Ownership will sign a master lease for 12–24 months at $4,050 per month for the rooftop space, which they are currently utilizing as storage and property management space.

Elevators

Two upgraded elevators (one passenger and one passenger/freight).

Electrical Capacity

The property has high-capacity electrical service with room for two additional electrical meters (1600A building and 400A elevators).

Parking

There are 18 dedicated surface parking spots, with potential expansion up to 22 spots.

Tenant Utilities

All units are electric, with tenants responsible for baseboard heat.

Unit Mix


(9) Two-bedroom units
(42) One-bedroom units
(1) Studio unit
Rooftop Space (leased back at $4,050/month)


 

Location: Situated in the desirable South Shore neighborhood of Chicago, close to the Loop and Lakefront.

Upside Potential: With the property’s strong in-place cash flow, master-leased rooftop space, and modern infrastructure, there is significant potential for value-add opportunities.

On-Site Amenities: High-quality amenities and common areas enhance tenant satisfaction and retention.

Parking and Utilities: Sufficient parking and tenant responsibility for electric baseboard heating contribute to operational efficiency.




Operational Efficiency:


All-Electric Building: With tenant-paid electric baseboard heating, operational costs for the owner are minimized. This setup enhances the property's profitability and simplifies utility management.
On-Site Management: The property benefits from dedicated on-site management, ensuring efficient operations and tenant satisfaction.


 

On-Site Facilities:


Rooftop Space: The property features a 3,800-square-foot penthouse common area lounge with a rooftop deck offering breathtaking views of Lake Michigan, a standout feature for attracting tenants and event use.
Parking: The property includes 18 dedicated surface parking spaces with the potential to expand to 22, offering tenants convenience in a city setting.
Laundry Facilities: Equipped with ten credit card operable laundry machines, the laundry facilities offer convenience for tenants while providing additional income.
Elevator Service: The building is serviced by two upgraded elevators, one for passengers and one for freight, enhancing tenant convenience and supporting maintenance needs.


 

Investment Potential:


Current Cash Flow: The property offers strong in-place cash flow with a current NOI of $617,825 and a cap rate of 8.83%%. The financing estimate terms further enhance the investment appeal.
Pro Forma Upside: There is considerable upside potential with a projected Pro Forma NOI of $802,380, increasing the cap rate to 11.46%, making this property an excellent opportunity for value-add investors.


 

Location & Neighborhood:


Prime Location: The property is situated in the vibrant South Shore neighborhood of Chicago, just a 15-minute drive from the Loop and only a block away from the Lakefront, providing tenants with easy access to Lake Shore Drive.
Cultural Hub: The area boasts tree-lined streets and proximity to a range of cultural, recreational, and shopping amenities, increasing the property's appeal.

Map:
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