2501-17 W 79th St
10-Unit Chicago Strip Center | 10.9% Current Cap | 90% Occupancy & Redevelopment Up
Marketing description
HRE is pleased to present a rare Cook County income-producing retail property located in the City of Chicago. 2501–2517 W. 79th Street is a 10-unit neighborhood strip center positioned along an established commercial corridor within the Auburn Gresham / Ashburn trade area. The property offers investors a strong combination of in-place cash flow, long-term tenant history, immediate lease-up upside, and future redevelopment optionality.
The asset is currently income-producing with a diversified tenant mix and several tenants that have operated at the property for more than 10 years. This long-term occupancy history demonstrates the property’s importance as a neighborhood-serving retail center and supports the stability of the investment. The property currently has one vacancy, creating an immediate opportunity for a new owner to increase income through lease-up. A similar unit was recently leased at $2,250 per month, supporting a projected rent of $2,200 per month for the vacant space.
The current corrected annual gross rental income is approximately $134,280, with a corrected current NOI of approximately $64,937. At the $595,000 list price, the property is being offered at an estimated 10.9% current cap rate. The value-add story is especially compelling due to older lease structures, month-to-month tenants, and below-market rents.
The property also benefits from a recent property tax reduction of $13,104, improving the operating expense profile and strengthening the investment return. Located along W. 79th Street with approximately 11,800 vehicles per day, the center offers strong visibility and accessibility for small-bay retail, service, office, daycare, beauty, religious, and community-oriented tenants.
In addition to the current income-producing use, the site offers long-term optionality through the preliminary District 79W redevelopment concept. The concept envisions a future mixed-use community development with affordable senior housing and ground-floor retail/medical space. This gives an investor the ability to acquire a cash-flowing Chicago retail asset today while preserving the opportunity to evaluate a larger redevelopment strategy in the future.
This is a rare opportunity to acquire a Chicago neighborhood retail center with current income, long-term tenancy, near-term lease-up upside, significant pro forma growth potential, and future development optionality.
Investment highlights
• Rare Chicago Income-Producing Retail Asset — 10-unit neighborhood strip center located at 2501–2517 W. 79th Street in Chicago’s Auburn Gresham / Ashburn trade area.
• Strong In-Place Cash Flow — Current annual gross rental income of approximately $134,280, supported by a diversified tenant base and long-term neighborhood occupancy.
• Attractive Current Cap Rate — Current NOI of approximately $64,937, representing an estimated 10.9% current cap rate at the $595,000 list price.
• Major Pro Forma Upside — Stabilized pro forma gross income of approximately $213,600 with projected expenses of $56,238, producing projected NOI of $157,362.
• Immediate Lease-Up Opportunity — One vacant unit provides near-term upside, with projected rent of $2,200/month supported by a similar unit recently leased at $2,250/month.
• Below-Market Rent Growth Potential — Several tenants are operating under older lease structures or month-to-month arrangements, creating an opportunity to renew tenants under updated lease terms and increase rental income over time.
• Long-Term Tenant History — Several tenants have operated at the center for 10+ years, demonstrating strong tenant retention and neighborhood demand.
• Property Tax Reduction — Property taxes have been reduced by $13,104, improving the operating expense profile and supporting stronger investor returns.
• Strong 79th Street Visibility — Located along W. 79th Street with approximately 11,800 vehicles per day, providing exposure for neighborhood retail and service tenants.
• Future Development Optionality — A preliminary District 79W redevelopment concept has been prepared for the site, envisioning a mixed-use affordable senior housing and retail/medical project, subject to approvals.
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