Two-Unit Duplex with Basement
For Sale
$350,000
3229 Penn Avenue N, Minneapolis, MN 55412
Residential Income, Minneapolis, MN
Property Size2,006 SF
Lot Size0.12 Acres
Price / SF$174.48
Days on Market11
Property Features for 3229 Penn Avenue N
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Bedrooms
6
Bathrooms
2
Full bathrooms
2
Rooms
Bedroom 2, Basement, Bathroom 2, Bedroom 3, Bedroom 6, Bathroom 1, Laundry Room, Bedroom 1, Bedroom 5, Bedroom 4
Parking features
Parking Lot
Subdivision
Rheems Add
Lot features
Tree Coverage - Light
High school district
Minneapolis
Directions
LOWRY AND PENN NO ON PENN TO HOME
Standard status
Active
APN
0802924140155
Size
2,006 SF
Lot size
0.12 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
4039
Utilities
Heating system
Forced Air
Amenities
coin-operated laundry
Building Details
Year built
1963
Listing Agency:
RE/MAX Results · RE/MAX International
(952) 848-2400
Listed By:
Thomas Chan Cochrane-Cole
(952) 829-2900
Added: Sep 17
Changed: Sep 26
Last Checked: Sep 27 at 4:06PM
MLS# 7146328
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 2,006-square-foot duplex contains two vertically arranged units, each with three bedrooms, one bathroom, hardwood floors, a separate furnace, and an individual water heater. The property was built in 1963 and includes coin-operated laundry, off-street parking, and a basement with additional space. Utilities are paid by the tenants. The upper unit is owner occupied, while the lower unit is leased.
Situated on a 0.12-acre lot in Minneapolis, the property offers a residential income configuration with separate living spaces and mechanical systems. The basement may provide an opportunity to add a third unit, subject to city approval.
Situated on a 0.12-acre lot in Minneapolis, the property offers a residential income configuration with separate living spaces and mechanical systems. The basement may provide an opportunity to add a third unit, subject to city approval.
Key Highlights
- 2,006 square feet on a 0.12‑acre lot
- Two‑unit up‑and‑down duplex built in 1963
- Each unit includes 3 bedrooms and 1 bathroom
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
$29,309
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
8.37%
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%
$586,180
$586.2K
Cap Rate 7%
$418,700
$418.7K
Cap Rate 9%
$325,656
$325.7K
Market Conditions
NOI Build-Up for 2,006 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
$44.5K $22.20/SF
− Vacancy
−$2.7K −$1.33/SF
EGI
$41.9K $20.87/SF
− OpEx
−$12.6K −$6.26/SF
NOI
$29.3K $14.61/SF
Area
Minneapolis, MN
Vacancy
5.98%
Lease Rate
$22.20 /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%
$586,180
Cap Rate 7%
$418,700
Cap Rate 9%
$325,656
Alternative Uses
Best Use
Multifamily LT 5
$418.7K
$366.4K – $488.5K
NOI $29,309 @ 7.0% cap · market cap 8.37%
Second Best
Apartment 5plus
$384.6K
$336.5K – $448.7K
NOI $26,920 @ 7.0% cap · market cap 7.69%
Theoretical Best
Office A
$478.6K
$418.8K – $558.4K
NOI $33,501 @ 7.0% cap · market cap 9.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
472
Businesses Nearby
Explore this area
Business Placement
Demographics for 55412, MN
23,800
Population
9,676
Households
2.5
Avg Household Size
33
Median Age
28%
College-Educated
85%
High-School Grad
3.4 sq mi
ZIP Area
7,000
Density / Sq Mi
$71,905
Median Household Income
$42,494
Median Earnings
$1,340
Median Rent
$226,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Up-and-down duplex with spacious three-bedroom units, separate mechanical systems, laundry, and off-street parking.
Where is this duplex located?
The property is located at 3229 Penn Avenue N Minneapolis, MN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,006 square feet on a 0.12‑acre lot; Two‑unit up‑and‑down duplex built in 1963; Each unit includes 3 bedrooms and 1 bathroom
