Freestanding Two-Unit
For Sale
$540,000
2038 W Broadway Avenue, Minneapolis, MN 55411
Commercial Sale, Minneapolis, MN
Property Size4,121 SF
Lot Size0.13 Acres
Price / SF$131.04
Days on Market12
Property Features for 2038 W Broadway Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial
Rooms
Basement
Parking features
Driveway
Exterior features
Block
Subdivision
Forest Heights
High school district
Minneapolis
Directions
Take I-94 West to West Broadway Avenue. The property is located on West Broadway Avenue between Oliver Avenue and Logan Avenue.
Standard status
Active
APN
1602924220174
Lot size
0.13 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
7622
Utilities
Heating system
Forced Air
Building Details
Year built
1949
Listing Agency:
RE/MAX Results · RE/MAX International
(952) 848-2400
Listed By:
Darisha M Hill
(952) 829-2900
Added: Aug 11
Changed: Aug 22
Last Checked: Aug 22 at 6:06PM
MLS# 7125341
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.
Investment Insights
Based on property information with market context.
This freestanding storefront property contains approximately 4,121 finished square feet arranged across two commercial units, with two bathrooms and a basement. The 1949 building has a block exterior, forced-air heating, and six parking spaces. Separate electricity and heating systems support independent unit operations, while the configuration can accommodate retail, office, professional services, or other permitted commercial uses. The sale includes the commercial building and real estate only.
Located along West Broadway Avenue in North Minneapolis, the property sits directly across from the Capri Theater. Improvements completed since 2012 include a newer roof, electrical work, and plumbing updates. The 0.13-acre lot provides a compact commercial setting with driveway parking and a visible freestanding presence on the avenue.
Located along West Broadway Avenue in North Minneapolis, the property sits directly across from the Capri Theater. Improvements completed since 2012 include a newer roof, electrical work, and plumbing updates. The 0.13-acre lot provides a compact commercial setting with driveway parking and a visible freestanding presence on the avenue.
Key Highlights
- Approximately 4,121 finished square feet on a 0.13‑acre lot
- Two commercial units with separate electricity and heating systems
- Six parking spaces with driveway access
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$49,631
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
9.19%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$992,620
$992.6K
Cap Rate 7%
$709,014
$709.0K
Cap Rate 9%
$551,456
$551.5K
Market Conditions
NOI Build-Up for 4,121 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$76.7K $18.60/SF
− Vacancy
−$5.7K −$1.40/SF
EGI
$70.9K $17.21/SF
− OpEx
−$21.3K −$5.16/SF
NOI
$49.6K $12.04/SF
Area
Minneapolis, MN
Vacancy
7.50%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$992,620
Cap Rate 7%
$709,014
Cap Rate 9%
$551,456
Alternative Uses
Best Use
Office B
$735.7K
$643.7K – $858.3K
NOI $51,499 @ 7.0% cap · market cap 9.54%
Second Best
Retail
$709.0K
$620.4K – $827.2K
NOI $49,631 @ 7.0% cap · market cap 9.19%
Theoretical Best
Office A
$983.2K
$860.3K – $1.15M
NOI $68,823 @ 7.0% cap · market cap 12.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
570
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55411, MN
31,214
Population
10,967
Households
2.8
Avg Household Size
28
Median Age
23%
College-Educated
81%
High-School Grad
4.0 sq mi
ZIP Area
7,804
Density / Sq Mi
$53,368
Median Household Income
$35,952
Median Earnings
$1,220
Median Rent
$233,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Flexible commercial layout with separate electric and heating systems supports owner occupancy or multiple businesses.
Where is this storefront property located?
The property is located at 2038 W Broadway Avenue Minneapolis, MN.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: Approximately 4,121 finished square feet on a 0.13‑acre lot; Two commercial units with separate electricity and heating systems; Six parking spaces with driveway access
