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    Turnkey Fitness Center with Income Title is generated by Realmo AI

    600 Union Street, Tracy, MN 56175

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    Claim this Listing
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    For Sale
    $615,000

    Commercial - Tracy, MN

    Property size:
    7,860 SF
    Lot size:
    2.13 Acres
    Price / SF:
    $78/SF
    Added:
    May 27, 2026
    Days on Market:
    2
    Last Refresh:
    May 28 at 2:06 pm

    Property Features for 600 Union Street

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Zoning
    Business/Commercial
    Parking features
    Driveway, Parking Lot
    Exterior features
    Metal
    Standard status
    Active
    APN
    311730110
    Size
    7,860 SF
    Lot size
    2.13 Acres

    Taxes and HOA fees

    Tax Year
    2026
    Tax Annual Amount
    14210

    Utilities

    Heating system
    Forced Air
    Cooling system
    Central Air

    Building Details

    Year built
    2007
    Roof type
    Asphalt, Shingle
    Architectural style
    Other

    We can help!

    Listing Contact
    Lee Fast
    Lee Fast

    Listing agent Lee Fast

    Listing office Heartland Real Estate Services LLC 400 Main Street, Lamberton, MN

    Listing date May 27, 2026

    MLS# 7081036 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

    • Strong income potential with half the building under contract with Sanford Health, providing built‑in lease income and long‑term stability.
    • Turn‑key fitness center included in the sale, complete with equipment, updated LED lighting, commercial tile flooring, showers, locker areas, and a secured FOB entry system.
    • Large lot (260x360) with a resealed and striped asphalt parking lot (100x135) and the potential to subdivide additional lots for future development.
    • Durable, low‑maintenance exterior featuring steel siding, Gerkin vinyl windows, steel‑framed commercial doors, and newer Decra HD steel shingles with a transferable 50‑year warranty.
    • Flexible investment or owner‑user opportunity with separate heating and air conditioning systems for each half of the building, allowing for independent and efficient operation.
    • Includes 2 additional lots that could be used as residential.

    Overview

    This commercial building, constructed in 2002, presents an investment opportunity with income potential and possibilities for future expansion. The 60x131 building is situated on a 2.13-acre lot featuring a resealed and striped asphalt parking lot measuring approximately 100x135. The property allows for subdividing additional lots for development. One half of the building operates as a fitness center, with all equipment included in the sale. The gym area features updated LED lighting, heavy-duty commercial tile flooring, showers, locker areas, bathrooms, a meeting room, and a secured FOB entry system with powered front doors and card reader access. Multiple commercial-grade treadmills and fitness equipment are included. The other half of the building is under contract with Sanford Health, offering lease income potential. Separate heating and air conditioning systems enable independent operation for each side. The property includes maintenance-free steel siding, Gerkin vinyl windows, steel-framed commercial doors, and newer Decra HD steel shingles with a transferable 50-year lifetime warranty. The gym area was repainted in 2020. The property offers possibilities in a functional space. Two additional lots are included in the sale that could be used as residential.
    Property Profile Location Intelligence

    Current Use by Public Records

    Fitness Depot Gym & Fitness Center

    Suggested Use

    Real Estate Agency Restaurant Law Firm Dental Office Hair Salon Building Supply Auto Repair Shop Gym & Fitness Center Big Box & Wholesale Store Hotel & Motel

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

    Similar Places Nearby

    • Fitness Depot — 600 E Union St, Tracy, MN 56175
    • Khyle E. Radke, ATC — 251 5th St E, Tracy, MN 56175
    • TRACY SPORTSMEN CLUB — 2104 191st St TWP, Tracy, MN 56175
    • Calm Creek Studio — 181 3rd St, Tracy, MN 56175

    Location Insight

    • Map
    • Local Demand
    City
    Tracy
    County
    Lyon
    State
    Minnesota
    Longitude
    -95.6062625
    Latitude
    44.2314855

    FAQs

    What type of property is this?
    Fitness center & gym - Commercial building with fitness center and lease income potential.
    Where is this fitness center & gym located?
    The property is located at 600 Union Street Tracy, MN.
    What is the asking price?
    The asking price for this property is $615,000.
    What are key features of this property?
    This property features: Strong income potential with half the building under contract with Sanford Health, providing built‑in lease income and long‑term stability.; Turn‑key fitness center included in the sale, complete with equipment, updated LED lighting, commercial tile flooring, showers, locker areas, and a secured FOB entry system.; Large lot (260x360) with a resealed and striped asphalt parking lot (100x135) and the potential to subdivide additional lots for future development.
    (507) 380-2232
    We can help!
    Listing Contact
    Lee Fast
    Lee Fast
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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
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