Flex Space with Heavy
For Sale
$3,200,000
1 Premier Drive, Long Lake, MN 55356
Flexible industrial facility combining office, manufacturing, and warehouse areas with upgraded building systems.
Property Size26,820 SF
Lot Size1.39 Acres
Price / SF$119.31
Days on Market283
Property Features for 1 Premier Drive
General Information
Standard status
Active
Size
26,820 SF
Total Parking Spaces
77
Lot size
1.39 Acres
Property subtype
Commercial
Zoning
Business/Commercial, Industrial
Occupancy
11%
Warehouse & Industrial
Warehouse Space
3,999 SF
Office Build-Out
8,738 SF
Drive-In Doors
4
Three-Phase Power
Yes
Heavy Power
Yes
Sprinkler System
Yes
Conditioned Warehouse
Yes
Additional Details
Gross Income
$51,451
Taxes and HOA fees
Annual Taxes
$51,451
Building Details
Building Size
26,820 SF
Year Built
1984
Year Renovated
1996
Units
3
Listing Agency:
Keller Williams Premier Realty Lake Minnetonka
(651) 492-2201
Listed By:
Royce Durhman
(651) 492-2201
Source:
Ivyrealestategroup
Added: Nov 20, 2025
Changed: Aug 28
Last Checked: Aug 29 at 10:19AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Premier Realty Lake Minnetonka
Investment Insights
Based on property information with market context.
This flex facility contains 8,738 SF of office area, 14,083 SF of manufacturing and technology space, and 3,999 SF of warehouse space. Available space includes 5,886 SF of office area along with the full manufacturing/technology and warehouse components. The manufacturing and technology areas offer 12-foot clear height, while the warehouse reaches 20 feet. Four drive-in doors support loading, and heavy 3-phase power serves the property.
The 1.39-acre site provides 77 off-street parking stalls. Building improvements include a rubber membrane roof installed in 2019 and nine rooftop HVAC units added the same year. The warehouse is heated and air-conditioned, and the facility has wet-pipe sprinkler coverage throughout. The original structure dates to 1984, with an addition completed in 1996.
The 1.39-acre site provides 77 off-street parking stalls. Building improvements include a rubber membrane roof installed in 2019 and nine rooftop HVAC units added the same year. The warehouse is heated and air-conditioned, and the facility has wet-pipe sprinkler coverage throughout. The original structure dates to 1984, with an addition completed in 1996.
Key Highlights
- 14,083 SF manufacturing/technology area and 3,999 SF warehouse space
- 8,738 SF office component, including 5,886 SF available
- 12‑foot clear height in manufacturing/technology areas; 20‑foot warehouse clear height
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
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
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible industrial facility combining office, manufacturing, and warehouse areas with upgraded building systems.
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/technology area and 3,999 SF warehouse space; 8,738 SF office component, including 5,886 SF available; 12‑foot clear height in manufacturing/technology areas; 20‑foot warehouse clear height
