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    High-Visibility Motel Redevelopment Opportunity Title is generated by Realmo AI

    1507 W Oakland Avenue, Austin, MN 55912

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    Claim this Listing
    For Sale
    $650,000

    Commercial - Austin, MN

    Lot size:
    0.79 Acres
    Added:
    Mar 23, 2026
    Days on Market:
    75
    Last Refresh:
    Jun 5 at 2:06 pm

    Property Features for 1507 W Oakland Avenue

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Zoning
    Business/Commercial
    Parking features
    Garage, Garage - Attached, Parking Lot, Paved or Surfaced
    Exterior features
    Vinyl
    Appliances
    Dryer, Microwave, Refrigerator, Water - Softener
    Standard status
    Active
    APN
    347050450
    Lot size
    0.79 Acres

    Taxes and HOA fees

    Tax Year
    2025
    Tax Annual Amount
    5911

    Utilities

    Heating system
    Forced Air
    Cooling system
    Central Air

    Building Details

    Year built
    1950
    Architectural style
    Other

    We can help!

    Listing Contact
    Diego Correa Bravo
    Diego Correa Bravo

    Listing agent Diego Correa Bravo

    Listing office RE/MAX Results 11200 W 78th Street, Eden Prairie, MN

    Listing date Mar 23, 2026

    MLS# 7042016 Listing URL

    Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    HighLights

    • High‑visibility commercial property on Oakland Ave with redevelopment potential.
    • Flexible B‑2 zoning allows for diverse commercial uses.
    • Includes a 3‑bedroom, 2.5‑bathroom single‑family home.
    • Recent capital improvements: roof and furnace installed within the past five years.
    • Situated on approximately 0.78 acres with nearly 200 feet of hospitality operators.
    • Located across from a 22‑unit multifamily development, indicating area investment.

    Overview

    This property presents a rare combination of hospitality operations and flexible residential infrastructure on one commercially zoned site. The parcel is currently operating as a motel and includes a large single-family home near the center of the lot with 3 bedrooms and 2.5 bathrooms. Recent capital improvements include a roof and furnace installed within the past five years, providing added stability for the next owner. With zoning and configuration that support multiple approaches, the site can be continued as hospitality, repositioned for another use, or evaluated for future redevelopment.

    Situated along Oakland Ave in Austin, the property offers nearly 200 feet of hospitality-oriented frontage. The zoning is B-2 community business, allowing a wide range of commercial uses, including retail, service businesses, hospitality, office, and other commercial development. Investment momentum in the immediate area is also visible, with a building across Oakland Ave currently being converted into a 22-unit multifamily development.

    For investors, this is a compelling acquisition for those looking for multiple paths to value creation, whether through continued motel operations, leveraging the on-site residence for management or rental income, repositioning under B-2, or planning a more comprehensive redevelopment strategy. The combination of frontage, recent improvements, and flexible zoning supports a broad range of tenant and buyer fit.
    Property Profile Location Intelligence

    Current Use by Public Records

    Motels

    Suggested Use

    Restaurant Real Estate Agency Law Firm Building Supply Spa & Massage Center Dental Office Big Box & Wholesale Store Auto Repair Shop Hair Salon Nail Salon

    Zoning and permitted uses should be independently verified with local authorities.

    Similar Places Nearby

    • Sterling Motel — 1507 W Oakland Ave, Austin, MN 55912
    • The Elam House — 309 21st St SW, Austin, MN 55912
    • Yair house — 704 10th Ave SW, Austin, MN 55912

    Location Insight

    • Map
    • Local Demand
    City
    Austin
    County
    Mower
    State
    Minnesota
    Longitude
    -92.993644
    Latitude
    43.666069

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    FAQs

    What type of property is this?
    Motel - Operating motel on a high-visibility commercial parcel with flexible B-2 zoning and an on-site residence for added income options.
    Where is this motel located?
    The property is located at 1507 W Oakland Avenue Austin, MN.
    What is the asking price?
    The asking price for this property is $650,000.
    What are key features of this property?
    This property features: High‑visibility commercial property on Oakland Ave with redevelopment potential.; Flexible B‑2 zoning allows for diverse commercial uses.; Includes a 3‑bedroom, 2.5‑bathroom single‑family home.
    (507) 601-9145
    We can help!
    Listing Contact
    Diego Correa Bravo
    Diego Correa Bravo
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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