Duplex With Separate
For Sale
$239,900
1026 E 3rd St, Duluth, MN 55805
Two dwellings share one lot, each with separate utilities and access to a bus line.
Property Size849 SF
Price / SF$282.57
Days on Market121
Property Features for 1026 E 3rd St
General Information
Standard status
Active
Size
849 SF
Property subtype
Residential Income
Site & Location
Public Transit
Yes
Utilities to Site
Yes
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$2,833
Listing Agency:
RE/MAX Results
(218) 390-0615
Listed By:
Gary Kalligher
(218) 390-0615
Source:
Exprealty
Added: Apr 15
Changed: Aug 13
Last Checked: Aug 13 at 3:38AM
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 RE/MAX Results
Investment Insights
Based on property information with market context.
This duplex property at 1026 E 3rd St includes two separate dwellings situated on a single lot. Each unit has separate utilities, supporting distinct utility arrangements within the property.
The property is near universities, hospitals, downtown amenities, and a bus line, placing several established destinations and public transportation within the surrounding area. Its Duluth location provides access to the city’s institutional and downtown districts.
The property is near universities, hospitals, downtown amenities, and a bus line, placing several established destinations and public transportation within the surrounding area. Its Duluth location provides access to the city’s institutional and downtown districts.
Key Highlights
- Two separate dwellings located on one lot
- Separate utilities for both units
- Near universities, hospitals, downtown amenities, and a bus line
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
$7,566
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
3.15%
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%
$151,320
$151.3K
Cap Rate 7%
$108,086
$108.1K
Cap Rate 9%
$84,067
$84.1K
Market Conditions
NOI Build-Up for 849 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
$11.5K $13.50/SF
− Vacancy
−$653 −$0.77/SF
EGI
$10.8K $12.73/SF
− OpEx
−$3.2K −$3.82/SF
NOI
$7.6K $8.91/SF
Area
St. Louis County, MN
Vacancy
5.70%
Lease Rate
$13.50 /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%
$151,320
Cap Rate 7%
$108,086
Cap Rate 9%
$84,067
Alternative Uses
Best Use
Multifamily LT 5
$108.1K
$94.6K – $126.1K
NOI $7,566 @ 7.0% cap · market cap 3.15%
Second Best
Apartment 5plus
$99.3K
$86.9K – $115.9K
NOI $6,953 @ 7.0% cap · market cap 2.90%
Theoretical Best
Specialty Retail
$329.3K
$288.2K – $384.2K
NOI $23,054 @ 7.0% cap · market cap 9.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
3,858
Businesses Nearby
Explore this area
Business Placement
Demographics for 55805, MN
9,731
Population
5,430
Households
1.8
Avg Household Size
31
Median Age
37%
College-Educated
93%
High-School Grad
1.4 sq mi
ZIP Area
6,951
Density / Sq Mi
$43,077
Median Household Income
$26,309
Median Earnings
$984
Median Rent
$171,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two dwellings share one lot, each with separate utilities and access to a bus line.
Where is this duplex located?
The property is located at 1026 E 3rd St Duluth, MN.
What is the asking price?
The asking price for this property is $239,900.
What are key features of this property?
This property features: Two separate dwellings located on one lot; Separate utilities for both units; Near universities, hospitals, downtown amenities, and a bus line
