Horace Industrial Condo
For Sale
Contact for pricing
1004 5th St E, Horace, ND 58047
4,800 SF industrial condo building in Horace, North Dakota.
Property Size4,800 SF
Price / SF$148.96
Days on Market194
Property Features for 1004 5th St E
General Information
Standard status
Active
Size
4,800 SF
Property subtype
Industrial, Office
Building Details
Year Built
2025
Listing Agency:
Horizon Real Estate Group
(701) 478-7600
Listed By:
Cole Foss · License #11133
Source:
Crexi
Added: Jan 30
Changed: Aug 10
Last Checked: Aug 11 at 7:58AM
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 Horizon Real Estate Group
Investment Insights
Based on property information with market context.
This 4,800 SF shop condo building is located in the Horace industrial market. The property, scheduled for completion in 2025, offers flexibility and income potential. The building consists of three units, each ranging from 1,597 to 1,605 SF. The property allows for a user-plus-income strategy, where one bay can be occupied while the other two are leased. The interior layout is customizable, with the option to remove interior walls to create a workspace ranging from 1,600 SF to the full 4,800 SF. The condo ownership includes exterior signage rights. Constructed by Balzum Cullen Construction, the property is located at 1004 5th Street East in Horace's industrial corridor, providing access to the Fargo-Moorhead metro area. It is suited for owner-operators seeking workspace and rental income, businesses relocating with expansion needs, startups requiring scalable space, investors targeting high-growth industrial markets, and premium storage or workshop facilities.
Key Highlights
- Own entire 4,800 SF shop condo building for maximum flexibility and income potential.
- Brand new construction (2025) in booming Horace industrial market.
- User + Income Strategy: Occupy one bay, lease two others for strong ROI.
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
$41,334
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
5.78%
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%
$826,680
$826.7K
Cap Rate 7%
$590,486
$590.5K
Cap Rate 9%
$459,267
$459.3K
Market Conditions
NOI Build-Up for 4,800 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
$69.1K $14.40/SF
− Vacancy
−$5.5K −$1.15/SF
EGI
$63.6K $13.25/SF
− OpEx
−$22.3K −$4.64/SF
NOI
$41.3K $8.61/SF
Area
Cass County, ND
Vacancy
8.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
35.00%
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%
$826,680
Cap Rate 7%
$590,486
Cap Rate 9%
$459,267
Alternative Uses
Best Use
Flex RnD
$590.5K
$516.7K – $688.9K
NOI $41,334 @ 7.0% cap · market cap 5.78%
Second Best
Warehouse
$487.9K
$426.9K – $569.2K
NOI $34,150 @ 7.0% cap · market cap 4.78%
Theoretical Best
Specialty Retail
$886.8K
$776.0K – $1.03M
NOI $62,078 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
89
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 58047, ND
4,216
Population
1,815
Households
2.3
Avg Household Size
38
Median Age
43%
College-Educated
97%
High-School Grad
70.2 sq mi
ZIP Area
60
Density / Sq Mi
$142,216
Median Household Income
$68,783
Median Earnings
$963
Median Rent
$417,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 4,800 SF industrial condo building in Horace, North Dakota.
Where is this flex space located?
The property is located at 1004 5th St E Horace, ND.
What is the asking price?
The asking price for this property is $715,000.
What are key features of this property?
This property features: Own entire **4,800 SF shop condo** building for maximum flexibility and income potential.; Brand new construction (2025) in booming Horace industrial market.; User + Income Strategy: Occupy one bay, lease two others for strong ROI.
