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    The Largest CRE Database in the US with Over 1 Million Listings

    425 Prospect St Peterson, MN 55962

    Sponsored
    For Sale
    $685,000

    Commercial - Peterson, MN

    Lot size:
    0.11 Acres
    Days on Market:
    2
    Last Refresh:
    Jan 30 at 3:06 am

    Property Features for 425 Prospect St

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Standard status
    Active
    Zoning
    Business/Commercial,Other,Residential-Multi-Family,Residential-Single Family
    Rooms
    Bedroom 1, Bedroom 2, Bedroom 3, Bedroom 4, Bedroom 5
    Bedrooms
    12
    APN
    tbd
    Parking features
    Driveway, Garage, Guest, Heated
    Exterior features
    Wood
    Appliances
    Dishwasher, Dryer, Freezer, Microwave, Range, Refrigerator, Washer, Water - Softener
    Lot size
    0.11 Acres

    Utilities

    Heating system
    Baseboard, Forced Air, Radiant, Zoned (Heating)
    Cooling system
    Central Air, Wall Unit(s)

    Building Details

    Year built
    1904
    Flooring type
    Carpet, Tile, Wood
    Building materials
    Concrete, Frame, Stone
    Roof type
    Asphalt, Rubber, Shingle
    Architectural style
    Other

    We can help!

    Listing Contact
    Marjorie Weir

    National Realty Guild (651) 330-8001

    Listing agent Marjorie Weir (651) 330-8001

    Listing date Jan 29, 2026

    MLS# 7011415 Listing URL

    Copyright © 2026 Regional Multiple Listing Service of Minnesota [NorthStarMLS]. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    Learn more

    Property Insight Report

    Overview

    Victorian Inn in Peterson, MN

    The Wen Inn, located in the Driftless Area near Winona and Lanesboro, offers a balance of lifestyle and income. This well-preserved Victorian inn provides the character of an old, established property with major infrastructure updates. A carriage house built in the late 1990s adds modern utility, whirlpool suites, and storage. The business is straightforward to manage, with consistent seasonal demand driven by bike trail traffic, scenic getaways, wedding parties and group stays. Summers are active and revenue-producing, while winters offer a slower pace and flexibility for retreats, girls’ getaways, or locking up and heading south for part of the season. The property is zoned for Business/Commercial, Residential-Multi-Family, and Residential-Single Family uses. The lot size is 0.114 acres. The inn offers a peaceful, relaxing environment less than two hours from the Twin Cities. The seller will train buyer on all Inn systems to ensure a smooth transition.
    Property Profile Insight Report Location Intelligence

    Current Use by Public Records

    Bed & breakfasts

    Suggested Use

    Restaurant Clothing Store Auto Repair Shop Wholesale Shop Department Store Hotel & Motel Women's Store Pet Supply Store Breakfast

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

    Location Insight

    • Map
    • Local Demand
    City
    Peterson
    County
    Fillmore
    State
    Minnesota
    Longitude
    -91.834225
    Latitude
    43.785294

    Nearby Similar for Sale

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      0.07 Acres

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      Peterson Commercial Space - Mill Street

      Charming 800 sq ft commercial building.
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    • $134,000
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    FAQs

    What type of property is this?
    Bed & breakfast - Well-preserved Victorian inn with modern updates in a peaceful setting.
    Where is this bed & breakfast located?
    The property is located at 425 Prospect St Peterson, MN.
    What is the asking price?
    The asking price for this property is $685,000.
    What are key features of this property?
    This property features: - Established Victorian Inn with updated infrastructure, blending historic charm with modern convenience.; - Turnkey business opportunity with consistent seasonal income from bike trail traffic, scenic getaways, and events.; - **Carriage house addition provides modern amenities like whirlpool suites and extra storage.**
    (651) 330-8001
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    425 Prospect St Peterson, MN 55962
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    Peterson, MN 55962
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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.

    More about this property
    425 Prospect St Peterson, MN 55962
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    We can help!
    Listing Contact
    Marjorie Weir
    (651) 330-8001
    Learn more
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