Industrial Flex
For Sale
$3,200,000
1 Premier Drive, Long Lake, MN 55356
Commercial Sale, Long Lake, MN
Property Size26,820 SF
Lot Size1.39 Acres
Price / SF$119.31
Days on Market280
Property Features for 1 Premier Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial, Industrial
Parking features
Parking Lot, Covered
Exterior features
Block
Subdivision
Shaughnessy Circle
Lot features
Corner Lot
High school district
Orono
Directions
1 block south of Wayzata Boulevard in Long Lake's industrial park. Located across the street from the post office.
Standard status
Active
APN
3411823240067
Lot size
1.39 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
51452
Utilities
Heating system
Zoned, Radiant, Forced Air
Cooling system
Zoned
Building Details
Year built
1984
Building materials
Block
Roof type
Flat, Rubber
Listing Agency:
Keller Williams Premier Realty Lake Minnetonka · Keller Williams Realty
(952) 475-0111
Listed By:
Royce Durhman
(952) 475-0111
Added: Nov 20, 2025
Changed: Aug 27
Last Checked: Aug 27 at 12:06PM
MLS# 6820365
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 block-built flex facility combines 8,738 SF of office area, 14,083 SF of manufacturing/technology space, and 3,999 SF of warehouse space on 1.39 acres. Available space includes 5,886 SF of office area, 14,083 SF of manufacturing/technology area, and 3,999 SF of warehouse area. The manufacturing/technology sections offer 12-foot clear height, while the warehouse reaches 20 feet. Four drive-in doors support loading, and the building has heavy 3-phase power.
Constructed in 1984 with an addition completed in 1996, the property received a new rubber membrane roof and nine new rooftop HVAC units in 2019. The warehouse is heated and air-conditioned, and the building has wet-pipe fire sprinklers. I-1 Industrial zoning, 77 off-street parking stalls, and a 10.63% leased rate round out the operating profile.
Constructed in 1984 with an addition completed in 1996, the property received a new rubber membrane roof and nine new rooftop HVAC units in 2019. The warehouse is heated and air-conditioned, and the building has wet-pipe fire sprinklers. I-1 Industrial zoning, 77 off-street parking stalls, and a 10.63% leased rate round out the operating profile.
Key Highlights
- 14,083 SF manufacturing/tech area plus 3,999 SF warehouse and 8,738 SF office space
- 1.39‑acre industrial property with I‑1 Industrial zoning
- 12 ft. clear height in manufacturing/tech areas and 20 ft. in warehouse area
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
$291,365
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
9.11%
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%
$5,827,300
$5.8M
Cap Rate 7%
$4,162,357
$4.2M
Cap Rate 9%
$3,237,389
$3.2M
Market Conditions
NOI Build-Up for 26,820 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
$434.5K $16.20/SF
− Vacancy
−$18.2K −$0.68/SF
EGI
$416.2K $15.52/SF
− OpEx
−$124.9K −$4.66/SF
NOI
$291.4K $10.86/SF
Area
Hennepin County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$5,827,300
Cap Rate 7%
$4,162,357
Cap Rate 9%
$3,237,389
Alternative Uses
Best Use
Warehouse
$5.05M
$4.42M – $5.90M
NOI $353,800 @ 7.0% cap · market cap 11.06%
Second Best
Office B
$4.55M
$3.98M – $5.31M
NOI $318,484 @ 7.0% cap · market cap 9.95%
Theoretical Best
Office A
$6.40M
$5.60M – $7.47M
NOI $447,909 @ 7.0% cap · market cap 14.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20 ft
Clear height
4
Drive-in doors
10.6%
Occupancy
Yes
Heavy power
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
382
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55356, MN
5,790
Population
2,312
Households
2.5
Avg Household Size
45
Median Age
64%
College-Educated
98%
High-School Grad
13.1 sq mi
ZIP Area
442
Density / Sq Mi
$171,333
Median Household Income
$90,433
Median Earnings
$1,732
Median Rent
$712,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Dining On Hold — 1865 Wayzata Blvd, Long Lake, MN 55356
Frequently Asked Questions
What type of property is this?
Flex space - Multi-component industrial facility with office, manufacturing, and warehouse areas under I-1 Industrial zoning.
Where is this flex space located?
The property is located at 1 Premier Drive Long Lake, MN.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: 14,083 SF manufacturing/tech area plus 3,999 SF warehouse and 8,738 SF office space; 1.39‑acre industrial property with I‑1 Industrial zoning; 12 ft. clear height in manufacturing/tech areas and 20 ft. in warehouse area
