7815 S Kedzie Ave 6,600 SF 100% Leased Retail Building Chicago, IL 60652 $1,575,000 ($238.64/SF)

Stabilized 5-Unit Mixed-Use Investment Opportunity

One Commercial Space + Four Residential Units | 100% Stabilized

KW Commercial is pleased to offer the opportunity to sell 7815 S Kedzie Ave, Chicago, IL 60652, a 100% leased mixed-use investment asset comprised of four (4) residential units and one (1) ground-floor commercial space. This stabilized property delivers diversified cash flow, structured lease protections, and strong underlying land value—positioning it as a compelling risk-adjusted investment opportunity on Chicago’s Southwest Side.

Executive Investment Summary

7815 S Kedzie Ave is a fully stabilized, income-producing mixed-use asset strategically positioned along the well-trafficked South Kedzie Avenue commercial corridor. The property consists of a 6,600 SF building situated on an oversized 11,841 SF land parcel, providing both immediate cash flow stability and long-term intrinsic land value.

Originally constructed in 1965 and later repositioned from its former hotel use into its current mixed-use configuration, the property offers an efficient layout with approximately 3,300 square feet of ground-floor commercial space and four residential units above. The diversified tenancy structure reduces volatility typically associated with single-tenant assets, creating a more durable and resilient income profile.

Property Overview
Asset Type: Stabilized Mixed-Use (4 Residential Units + 1 Commercial Unit)?
Occupancy: 100% Leased?
Building Size: 6,600 SF?
Commercial Footprint: ±3,300 SF (Ground Floor)?
Land Area: 11,841 SF (Oversized Parcel)?
Year Built: 1965?
Zoning / Use: Mixed-Use (Residential + Commercial)

Investment Highlights

The asset benefits from a diversified revenue stream blending residential tenancy with a long-term commercial occupant, reducing binary vacancy exposure commonly associated with single-tenant retail properties.

The commercial lease structure includes expense participation, providing a partial hedge against inflationary cost increases and strengthening long-term NOI durability.

The oversized land parcel further enhances the investment profile, offering operational flexibility, secured parking, and long-term residual land value support—an uncommon feature for mixed-use properties of this scale.

Key Highlights
• Fully stabilized, income-producing asset?
• Diversified revenue stream (residential + commercial)?
• Long-term daycare tenancy with renewal options?
• Modified Gross lease structure with expense participation?
• Oversized lot supporting intrinsic land value premium?
• Secured on-site parking (rare corridor amenity)?
• Reduced vacancy exposure versus single-tenant retail

Commercial Component

Ground Floor – Daycare Tenant
The ground-floor commercial space is leased to a daycare operator under a structured Modified Gross lease with renewal options, providing predictable income visibility and operational stability within a residentially dense trade area.
The lease includes expense participation provisions, whereby the tenant reimburses a percentage of annual increases in real estate taxes, insurance, and water, enhancing expense containment and supporting long-term cash flow stability.

Commercial Strengths:
• Long-term tenancy structure?
• Expense escalation participation?
• Stable, neighborhood-serving use?
• Reduced re-leasing volatility relative to discretionary retail

Residential Component

Second Floor:
The second floor consists of four fully leased residential units generating consistent in-place income. Residential tenancy provides additional diversification and organic growth potential through future rent adjustments aligned with submarket trends.
By distributing revenue across multiple units, the residential component materially reduces concentration risk and enhances portfolio resilience.

Operating Expense Profile:
Operating expenses remain straightforward and efficiently managed. The commercial tenant’s expense reimbursement structure further strengthens the predictability of net operating income over time.

This partial inflation hedge is particularly notable for an asset of this size and enhances the overall durability of returns.

Parking & Site Configuration:
The property benefits from a fully secured and gated site, encompassing the entire 11,841 SF parcel, providing controlled access and enhanced safety for both residential tenants and the commercial operator.

Parking Configuration
• 1 ADA-compliant space?
• 8 standard surface parking spaces

Parking Significance
• Operationally critical for daycare use?
• Enhances residential tenant convenience?
• Differentiator within the corridor

Location & Connectivity:
Positioned along the Kedzie Avenue commercial corridor, the property benefits from strong neighborhood density and accessibility.

Immediate access to CTA bus routes along Kedzie and 79th Street enhances commuter convenience, while proximity to the Kedzie Orange Line station and nearby Metra SouthWest Service stations provides additional regional connectivity to downtown Chicago.

The surrounding trade area is supported by established residential neighborhoods, active retail corridors, and continued reinvestment activity, reinforcing long-term tenant demand fundamentals.
Investment Thesis:
- 7815 S Kedzie Ave presents investors with a stabilized, diversified mixed-use asset featuring structured lease protections, inflation- mitigating expense participation, and intrinsic land value support.
- The combination of residential and commercial tenancy materially reduces downside exposure while maintaining consistent in-place income.
- This offering is well suited for investors seeking durable cash flow, moderate scale efficiency, and long-term hold potential within a stable Southwest Chicago submarket.