Riverfront Hospitality Asset with Redevelopment
For Sale
Contact for pricing
Pending
1 River Bend Pl, Chaska, MN 55318
Riverfront property in downtown Chaska with redevelopment potential.
Property Size72,578 SF
Days on Market190
Property Features for 1 River Bend Pl
General Information
Standard status
Pending
Size
72,578 SF
Property subtype
Hospitality
Investment Type
Value Add
Building Details
Year Built
1996
Year Renovated
2022
Stories
4
Listing Agency:
GJG Commercial
Listed By:
David Kampmeyer · License #40916733
Source:
Crexi
Added: Feb 2
Changed: Aug 8
Last Checked: Aug 7 at 3:09AM
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 GJG Commercial
Investment Insights
Based on property information with market context.
Located on the Minnesota River in downtown Chaska, MN, 1 River Bend Place is a riverfront hospitality asset with significant redevelopment potential. The property is situated on one of the most visible sites in the southwest Twin Cities metro, offering walkability to Firemen’s Park, the Chaska Curling Center, regional trail systems, and downtown restaurants and retail. The site is located within Chaska’s active riverfront revitalization corridor and benefits from ongoing infrastructure investment and strong demographic growth. A new, directly connected on-site restaurant tenant operates under a lease with annual rent escalations and has become a local favorite, providing a key lifestyle amenity for hotel guests while benefiting from demand generated by the approximately 82 on-site hotel rooms. The on-site pool has not been serviced or operated since the COVID period and is currently inactive. While currently operating as a hotel, the highest and best use is redevelopment. The City of Chaska has expressed support for a new long-term vision for the site, positioning it as a catalyst redevelopment opportunity. Investors can pursue either a hospitality repositioning strategy or a multifamily / mixed-use redevelopment, capitalizing on the site’s riverfront frontage, downtown connectivity, and strong municipal alignment. The property size is 72578 square feet.
Key Highlights
- Irreplaceable riverfront location in downtown Chaska with high visibility.
- Significant redevelopment potential supported by the City of Chaska.
- Strong connectivity to downtown amenities, parks, trails, and the Chaska Curling Center.
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
$452,478
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
7.87%
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%
$9,049,560
$9.0M
Cap Rate 7%
$6,463,971
$6.5M
Cap Rate 9%
$5,027,533
$5.0M
Market Conditions
NOI Build-Up for 72,578 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
$1.09M $15.00/SF
− Vacancy
−$136.1K −$1.88/SF
EGI
$952.6K $13.13/SF
− OpEx
−$500.1K −$6.89/SF
NOI
$452.5K $6.23/SF
Area
Carver County, MN
Vacancy
12.50%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
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%
$9,049,560
Cap Rate 7%
$6,463,971
Cap Rate 9%
$5,027,533
Alternative Uses
Best Use
Hotel Hospitality
$6.46M
$5.66M – $7.54M
NOI $452,478 @ 7.0% cap · market cap 7.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$17.32M
$15.15M – $20.20M
NOI $1,212,092 @ 7.0% cap · market cap 21.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
548
Businesses Nearby
Explore this area
Business Placement
Demographics for 55318, MN
29,729
Population
11,453
Households
2.6
Avg Household Size
37
Median Age
47%
College-Educated
93%
High-School Grad
39.9 sq mi
ZIP Area
745
Density / Sq Mi
$111,781
Median Household Income
$63,293
Median Earnings
$1,430
Median Rent
$389,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Riverfront property in downtown Chaska with redevelopment potential.
Where is this hotel located?
The property is located at 1 River Bend Pl Chaska, MN.
What is the asking price?
The asking price for this property is $5,750,000.
What are key features of this property?
This property features: Irreplaceable riverfront location in downtown Chaska with high visibility.; Significant redevelopment potential supported by the City of Chaska.; Strong connectivity to downtown amenities, parks, trails, and the Chaska Curling Center.
