10947 S King Drive
Chicago, IL 60628

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Description

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.

Features

• Property Type: Commercial
• Sub Type: Multi Family 5+
• Listing Status: Active Under Contract
• County/Area: Cook County
• Zip Code: 60628
• Year Built: 1924
• Stories: 3
• Units: 6 units
• Approximate Age: Older
• Built Before 1978 (Y/N): Yes
• Directions: Turn right onto E 83rd St Turn right onto S King Dr/S Martin Luther King Dr
• Heat/Ventilation: Radiators
• Information: 48-Hr Notice Required
• Main Type: Commercial Sale
• Tax Annual Amount: 5287.3
• Tax Year: 2023