6 Unit Multifamily Property Located in Chicago, IL

Highlights:

• Attractive Pricing – Offered at $475,000, equating to just $79,167 per unit and $55 per square foot, well below replacement cost.
• Spacious Unit Sizes – Each two-bedroom, one-bathroom apartment averages 1,400 SF, significantly larger than comparable units in the market, offering a strong tenant retention advantage.
• Immediate Cash Flow – Current NOI of $36,983 supports a solid in-place cap rate of 7.79% with an average rent of $1,005 per unit.
• Clear Value-Add Potential – With a light renovation investment of $10,000 per unit ($60,000 total), rents can be increased to $1,500 per unit, unlocking a pro forma NOI of $68,356 and a cap rate of 12.78%.
• Efficient Upside – Renovation plan is straightforward and capital-light, focusing on unit updates rather than major structural or mechanical upgrades.
• Competitive Rent Growth – Achievable rent increases bring the GRM down from 6.56 to 4.95, creating a highly efficient income stream and boosting long-term appreciation.
• Strong Submarket Fundamentals – Located on Chicago’s South Side with access to public transit, employment hubs, and neighborhood amenities, ensuring consistent tenant demand.

Description:

Midwest Investment Advisors with KW Commercial and Keller Williams ONEChicago is proud to present the exclusive offering of 10947 S. King Drive, a six-unit multifamily property strategically located in Chicago, Illinois. This asset features six expansive two-bedroom, one-bathroom apartments, each averaging 1,400 square feet, for a total building size of 8,709 square feet. The property is offered at $475,000, representing an attractive basis of $79,167 per unit and $55 per square foot—well below replacement cost and highly competitive for the submarket.

Currently, the property produces a net operating income (NOI) of $36,983, supported by average in-place rents of $1,005 per unit. This equates to a cap rate of 7.79% and a gross rent multiplier (GRM) of 6.56, providing investors with strong immediate cash flow. However, the true value of this opportunity lies in its compelling value-add strategy. With a targeted renovation investment of $10,000 per unit—or $60,000 in total—an investor can reposition the asset by updating interiors to meet market expectations. These improvements unlock higher market rents averaging $1,500 per unit, increasing gross potential income and elevating the NOI to a pro forma $68,356. At stabilization, the property achieves a pro forma cap rate of 12.78% and reduces the GRM to 4.95, reflecting a highly efficient and profitable multifamily investment.

The property’s fundamentals further enhance its appeal. Each apartment offers exceptionally large floorplans compared to typical two-bedroom units in the area, providing a competitive advantage in tenant retention and reducing turnover. The expansive layouts are ideal for families and working professionals, ensuring broad tenant demand and positioning the property as a long-term rental option. The combination of oversized units, affordable pricing, and an easily executable renovation plan creates a rare investment profile: immediate income, clear upside potential, and long-term appreciation.

From an investor’s perspective, 10947 S. King Drive delivers on multiple fronts. The affordable entry point minimizes acquisition risk, while the renovation strategy is straightforward and capital-light, avoiding costly mechanical or structural upgrades. The property’s in-place cash flow ensures near-term stability, and the projected double-digit returns provide exceptional upside. With strong fundamentals, proven value-add potential, and an advantageous price per unit, this offering represents an outstanding opportunity for both seasoned investors and those looking to enter the multifamily space with a high-yielding asset.