mixed use building

Real Estate Broker · Chicago, IL · Member since 2025 · 3 posts · 4 votes

Im looking at a 2-story, ~3000sq ft mixed-use building (wood-frame with brick exterior, ground-floor retail + two residential units above, unfinished basement, small 2 car garage) in the Chicago area built in 1910.

I will be inspected and it looks to be in average shape.

When does building age become a concern even when it is properly maintained.

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Greg ScottPro Member

Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes

Should you be concerned? You should know how to properly evaluate a property of that vintage. If you can't, that is concerning.

We've invested with friends who bought two 100+ year old apartments. They did a great job. We sold one at a nice profit. The other is cashflowing. I"m happy to be a part owner.

One key thing to know that every renovation is going to be 2x to 4x the cost of a similar renovation on a modern building.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
5d
Should you be concerned? You should know how to properly evaluate a property of that vintage. If you can't, that is concerning.
We've invested with friends who bought two 100+ year old apartments. They did a great job. We sold one at a nice profit. The other is cashflowing. I"m happy to be a part owner.
One key thing to know that every renovation is going to be 2x to 4x the cost of a similar renovation on a modern building.
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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
4d
How the building has been maintained is far more relevant than age. I undertake a lot of mixed-use development. Beyond the condition and whether the rehab is feasible who is the natural tenant for the retail component? That's where most miss. Unfortunately, a lot of the natural tenants for smaller retail spaces are no longer brick and mortar which makes it even more difficult to fill those spaces in many locations. I would spend just as much time validating the leasing as you are focused on the building condition and renovation process.
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- George Katris
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  Real Estate Broker · Chicago, IL · Member since 2025 · 3 posts · 4 votes
  4d
  Retail currently has a small carryout restaurant.
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Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 403 posts · 166 votes
4d
@George Katris Age by itself would not be my biggest concern. A well-maintained 1910 building can outperform a much newer property that has suffered from deferred maintenance. The real question is which major systems have already been replaced, which are nearing the end of their useful lives, and whether earlier renovations were properly permitted.
For a mixed-use Chicago-area building of this vintage, I would pay close attention to the foundation and basement moisture, masonry and tuckpointing, roof and drainage, electrical service and wiring, plumbing and sewer lines, heating systems, windows, insulation, fire separation, and code compliance between the retail and residential spaces. Also look for signs of repeated patchwork rather than comprehensive upgrades. The garage and any rear additions should be evaluated separately because they may have aged differently from the main structure.
I would supplement the general inspection with qualified specialists where needed—particularly a structural engineer, masonry contractor, electrician, plumber or sewer-scope provider, and an HVAC professional. Review permits, repair invoices, insurance availability, and any municipal violations as well. The goal is not to find a problem-free 115-year-old building; it is to understand the timing and cost of the next major repairs and make sure the purchase price and cash reserves reflect them. If the structure is sound and the larger systems have been responsibly updated, the age can be manageable. If several major items are approaching replacement at once, that is when age becomes a financial concern.
Wishing you the best with the inspection and due diligence—it sounds like an interesting opportunity.
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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
2d
If it’s too much work to take on or there’s too many unknowns then pass. Also I’d recommend finding a good Insurance carrier. It’s crazy how much insurance is on mixed use buildings in Chicago. We got screwed the first couple of years.
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Amit PatelBusiness Member
Property Manager · Bartlett, IL · Member since 2025 · 158 posts · 64 votes
2d
Hi
Honestly, age itself isn’t the issue. We manage plenty of 100+ year old buildings that run great. What matters is how many of the original systems are still in there. On a 1910 building, I’d focus the inspection on:
- Electrical: any knob-and-tube left, and whether each unit and the retail space have their own service.
- Plumbing: galvanized supply lines and a lead water service, which is common in Chicago. Get a sewer scope too, old clay lines are a frequent big-ticket surprise.
- Masonry and foundation: tuckpointing, lintels, and any moisture in that basement.
- Roof and porches: flat roofs and rear porches are where older buildings tend to eat money.
- Lead paint: assume it’s there. It matters for disclosures and turnovers, especially with families.
On the mixed-use side, check insurance quotes early (commercial plus residential costs more), separate meters, and the fire separation between the retail and the units above.
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Lisa PeckPro Member
Realtor · San Diego · Member since 2022 · 29 posts · 20 votes
2d
Divin said it well. Check out the main systems. If I hear restaurant I suggest you get the catch basin scoped to see if there are any problems getting the main sewer line (if you need someone let me know). Make sure you have a good flood control system and a great roof and building envelope. Get the brick tuck point checked. Chicago is about protecting to fair the elements and also understanding tenant rights. Get a great inspector that you trust and be open to maintaining and replacing as needed. They don't make em like they used to! I"ll take an old Chicago building (especially brick) over a newer build any day of the week!
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