2338-40 S Kedzie Ave

2338-40 S Kedzie Ave sits on the busy Kedzie Avenue commercial corridor between 23rd and 24th Streets in Little Village, a few blocks north of the 26th Street retail district. Steady car, bus and foot traffic gives the storefront strong visibility and a built-in customer base, and keeps the apartments in demand with renters who want to be close to shopping and transit. About a mile south, the Focal Point Community Campus is redeveloping 30 acres at 31st and Kedzie into a mixed-use campus anchored by a new Saint Anthony Hospital, bringing permanent jobs and added housing demand down the corridor. Little Village is also drawing renters priced out of Pilsen to the east, where rents and home prices continue to climb. The CTA Pink Line Kedzie station is less than half a mile north, the #52 Kedzie and #21 Cermak buses serve the block, and I-55 is about a mile south, with quick access to the Loop and Midway Airport.Essex Three-Twelve is pleased to offer 2338-40 S Kedzie Ave, a 9-unit mixed-use building in Chicago’s Little Village neighborhood, at $999,000, or $111,000 per unit. Built in 1906, the three-story masonry building has seven apartments above a ground-floor storefront, with a side lot and a tire shop. It offers a 7.23% in-place cap rate and reaches 9.53% by re-leasing the apartments at market rents. The residential mix includes two studios, two one-beds, and three two-beds. The storefront is leased to a bakery, and the side lot and rear garage to a tire shop. Together they contribute $3,500 per month, about 37% of gross income. The apartments average about $836 per month, 21-33% below the $1,000 studio, $1,100 one-bed and $1,300 two-bed rents supported by nearby comparables. Bringing them to market lifts NOI 32%, from $72,231 to $95,246, with no capital improvements needed. Little Village is positioned for long-term growth. About a mile south, the Focal Point Community Campus will redevelop 30 acres at 31st Street and Kedzie Avenue into a mixed-use campus anchored by a new Saint Anthony Hospital. The project will bring hundreds of permanent jobs and added renter demand to the Kedzie corridor. A new owner can capture the immediate mark-to-market gain and benefit from continued rent growth and appreciation as the campus is completed.