7304 S Union Ave 6 Unit Apartment Building Offered at $430,000 at a 10.24% Cap Rate Chicago, IL 60621

Presented by Midwest Investment Advisors with KW Commercial & Keller Williams ONEChicago
Midwest Investment Advisors is pleased to present 7304 S. Union Avenue, a 6-unit multifamily investment opportunity located on Chicago’s South Side. Offered at a purchase price of $430,000, this apartment property provides investors with immediate cash flow, strong in-place returns, and a clear pathway to value enhancement through lease-up and rent optimization.
The property consists of a balanced unit mix of (3) one-bedroom / one-bathroom units averaging approximately 1,075 SF and (3) two-bedroom / one-bathroom units averaging approximately 1,305 SF, totaling roughly 7,140 rentable square feet on a 0.11-acre lot. Originally constructed in 1914, the building benefits from large floor plans that support competitive rent growth relative to the surrounding market.
Currently, the asset generates $80,400 in gross scheduled rent with 3 of 6 units occupied, producing an effective gross income of $76,380 after a conservative vacancy assumption. Our team is also assisting with backfilling the available units to prove the pathway to profit. At current operations, the property delivers a Net Operating Income (NOI) of $44,032, equating to a compelling 10.24% in-place cap rate. Upon stabilizing occupancy and achieving market rents, projected Year 1 gross scheduled rent increases to $102,508, with NOI growing to approximately $62,246, supporting a pro forma cap rate of 14.48%.
Operating expenses are efficiently managed at approximately 42.4% of effective gross income in-place, improving to 36.1% at stabilization, driven by scale efficiencies and increased income rather than aggressive expense assumptions. The investment is underwritten with conservative vacancy, realistic market rents, and no assumed capital expenditures, making it well-suited for both value-add and cash-flow-oriented investors.
With favorable pricing at approximately $71,667 per unit and $60 per square foot, 7304 S. Union Ave presents an attractive entry point into the Chicago multifamily market, offering strong yield, upside through lease-up, and long-term appreciation potential.
This offering represents an ideal opportunity for investors seeking high cash-on-cash returns, operational upside, and a scalable multifamily asset in a supply-constrained urban submarket.