101-115 E 51st St, Chicago, IL

Investment Overview

WASHINGTON PARK RETAIL CENTER

101–115 E 51st St, Chicago, IL 60615

Executive Summary

Washington Park Retail Center presents a rare opportunity to acquire a stabilized, neighborhood-serving retail asset with strong in-place income and meaningful upside through lease-up. Strategically positioned at the signalized intersection of East 51st Street and South Michigan Avenue, the property benefits from consistent vehicular traffic, dense surrounding population, and proximity to major institutional and retail anchors.

Offered at $1,150,000, the asset consists of a 7,953 SF multi-tenant retail building situated on a 17,948 SF parcel, featuring 165 feet of frontage along 51st Street and dedicated on-site parking. The center is currently occupied by a diverse mix of service-oriented and food-based tenants, with one second-generation vacancy providing immediate value-add potential.

The property has demonstrated long-term tenant stability, with occupancy history dating back nearly two decades and leases extending through 2030. Combined with favorable B3-3 zoning and infrastructure conducive to food service uses, the asset is well-positioned for continued income growth and tenant demand.

Investment Highlights

• Stable In-Place Income with Upside
  • Current PGI: $185,316
  • Stabilized PGI: $213,516 upon lease-up
  • Vacancy provides immediate NOI growth and improved expense ratio
• Established Tenant Base
  • Oldest tenant in occupancy since 2006
  • Longest lease term extends through 2030
  • Mix of seven retail tenants with strong neighborhood ties
• Food Service-Ready Infrastructure
  • Multiple spaces equipped with Type I hoods, large kitchens, and prep areas
  • Non-restaurant units are plumbed and adaptable for food or service uses
  • Proven resilience through COVID due to take-out/QSR model
• Signalized Corner Location
  • Hard corner at 51st St & Michigan Ave
  • Traffic counts of approximately 12,548 vehicles per day
  • Strong visibility with 165 feet of frontage
• Transit-Oriented Location
  • Two blocks from the CTA Green Line at the 51st Street Station
  • Immediate access to multiple CTA bus routes along 51st Street and Michigan Avenue
• Recent Capital Improvements
  • Parking lot restriped and reconfigured (2026)
  • Roof recoated with updated flashing and coping (2017)
  • Routine plumbing maintenance and strong operational upkeep

Property Overview

• Address: 101–115 E 51st St, Chicago, IL 60615
• Property Name: Washington Park Retail Center
• Price: $1,150,000
• Building Size: 7,953 SF
• Lot Size: 17,948 SF
• Zoning: B3-3 (Community Shopping District)
• Tenants: 7
• Parking: 9+ surface spaces
• Frontage: 165 FT on 51st Street
• Traffic Count: 12,548 VPD
• Intersection: Signalized

Physical & Structural Details

• Foundation: Concrete slab
• Structure: Steel joist framing
• Exterior: Concrete masonry walls
• Windows: Thermopane glass
• Roof: Bituminous system
  • Recoated in 2017
  • Flashing replaced at all penetration points
  • Coping tiles replaced
• Parking Lot: Asphalt
  • Reconfigured and restriped in 2026

Systems & Maintenance

• HVAC: Tenant-maintained per lease agreements
• Electrical: Fluorescent interior lighting
• Plumbing:
  • Main lines rodded up to twice annually
• Environmental:
  • Phase I Environmental Site Assessment completed in 2022
  • No recognized environmental concerns

Tenancy & Leasing Profile

• Average Rent: $26.00/SF NNN
• Occupancy: 6 of 7 units leased
• Vacancy: One second-generation restaurant space
  • Currently being marketed for lease
  • Significant upside through lease-up
• Tenant Mix:
  • Four second-generation restaurant spaces
  • Three traditional retail/service units
• Lease Term Stability:
  • Long-term tenancy with historical retention
  • Lease expirations staggered, minimizing rollover risk

Location & Retail Corridor

Washington Park Retail Center is situated within a rapidly improving South Side corridor anchored by strong institutional and national retail presence. The property benefits from proximity to Hyde Park, Washington Park, and the University of Chicago, all of which have driven significant economic and demographic growth over the past two decades.

Nearby national and regional retailers include:

• Starbucks
• Whole Foods Market
• Walgreens

These anchors, along with additional neighborhood retail, contribute to consistent consumer traffic and reinforce the area as a key commercial node.

Transit & Accessibility

The property is exceptionally well-connected via public transportation:

• Two blocks from the CTA Green Line
• Direct access via the 51st Street Station
• Multiple CTA bus routes along 51st Street and Michigan Avenue

This accessibility supports both workforce mobility and customer traffic, enhancing tenant viability.

Demographics & Market Growth

Over the past 15–20 years, the surrounding South Side submarkets - particularly Hyde Park and Washington Park - have experienced substantial transformation driven by:

• Expansion of the University of Chicago
• Increased residential development and adaptive reuse projects
• Public and private investment in infrastructure and retail corridors
• Growing population density and rising household incomes

These trends have resulted in:

• Strengthened retail demand
• Increased consumer spending power
• Improved tenant credit quality and retention

The subject property stands to benefit directly from these long-term macroeconomic tailwinds.

Value-Add Opportunity

The offering presents a clear path to NOI growth through:

• Lease-up of the vacant second-generation space
• Potential rental rate increases toward market levels
• Continued demand for food-oriented retail spaces
• Optimization of expense ratios through stabilized occupancy

With a stabilized PGI of $213,516, investors can achieve meaningful yield expansion while maintaining a defensible basis.

MARKET OVERVIEW & SUBMARKET CONTEXT

Washington Park Retail Center is strategically positioned along the 51st Street commercial corridor, bridging the Washington Park and Hyde Park submarkets on Chicago’s South Side. This corridor has experienced a multi-decade transformation driven by institutional expansion, public-sector reinvestment, and steady infill development.

The surrounding area benefits from proximity to some of Chicago’s most significant economic and institutional anchors, including the University of Chicago, Jackson Park redevelopment initiatives, and ongoing corridor-level infrastructure improvements.

Over the past 15–20 years, the submarket has experienced:

• Significant demographic stabilization and income growth in select census tracts
• Increased owner-occupied residential investment and renovation activity
• Expansion of neighborhood-serving retail and QSR tenancy
• Strengthening of transit-oriented commercial demand along CTA corridors

These dynamics have materially improved the long-term fundamentals supporting neighborhood retail assets such as the subject property.

INSTITUTIONAL ANCHORS & CATALYSTS

University of Chicago Influence Zone

The property benefits from proximity to the University of Chicago, one of the largest economic engines on the South Side.

Key impacts include:

• Consistent demand from students, faculty, and hospital staff
• Strong employment base supporting daily retail traffic
• Long-term institutional capital investment in surrounding neighborhoods
• Spillover demand into Washington Park retail corridors

Obama Presidential Center Catalyst

The property is also located within the broader influence area of the Obama Presidential Center, located in nearby Jackson Park.

This development is expected to:

• Drive increased regional visitation and tourism traffic
• Accelerate infrastructure upgrades in adjacent neighborhoods
• Enhance retail demand across South Shore / Hyde Park / Washington Park corridors
• Improve long-term investor sentiment toward surrounding commercial assets

OPPORTUNITY ZONE & PUBLIC INCENTIVE OVERLAY

The subject property is believed to be located within or adjacent to federally designated Opportunity Zone census tracts (verification at tract level recommended).

If confirmed, this designation may provide investors with potential tax advantages, including:

• Deferral of capital gains taxes
• Reduction of taxable gains depending on hold period
• Potential tax-free appreciation on new gains if held long-term in a qualified structure

In addition, the property’s location within the City of Chicago 51st / Lake Park TIF District (T-175) further enhances its public incentive profile, supporting potential access to:

• Façade improvement programs
• Tenant improvement reimbursement
• Corridor infrastructure reinvestment
• Small business and retail activation grants (subject to approval)

Area Overview

- Washington Park, Chicago

Highlights

• Stable Income with Upside
  $185K PGI with upside to $213K via lease-up of one vacancy, offering immediate NOI growth potential.
• Prime Corner Location
  Signalized 51st & Michigan Ave corner with ~12,548 VPD and 165 FT frontage for strong visibility.
• Long-Term Tenant Stability
  Tenants in place since 2006 with leases through 2030, minimizing turnover and vacancy risk.
• Restaurant-Ready Spaces
  Multiple units with Type I hoods and kitchens, ideal for QSR and food-based tenants.
• Transit & Institutional Access
  Near CTA Green Line and major anchors like University of Chicago and Obama Presidential Center.
• High-Growth Corridor
  Located in a redeveloping South Side corridor with strong demographics and investment momentum.