Garage Condo at Workshops
For Sale
$295,500
721 Industrial Boulevard Unit D5, Watertown, MN 55388
1500 SF garage condo with many amenities for sale.
Property Size1,500 SF
Price / SF$197
Days on Market784
Property Features for 721 Industrial Boulevard Unit D5
General Information
Standard status
Active
Size
1,500 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$504
Amenities
3
Heated Garage.
Building Details
Year Built
2023
Listing Agency:
Edina Realty, Inc.
(763) 682-3434
Listed By:
Kevin Butcher
(952) 212-2374
Source:
Xome
Added: Jun 17, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:38AM
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 Edina Realty, Inc.
Investment Insights
Based on property information with market context.
This 1500 square foot garage condo, located at the Workshops of Watertown, offers a versatile space suitable for various commercial and multi-use purposes. The unit, measuring 30 feet by 50 feet, features sheet-rocked walls and a tin ceiling. A 16-foot wide by 14-foot high insulated garage door with opener provides convenient access. The unit is equipped with two LED lights, in-floor heating, 100-amp electrical service, a floor trench drain, and a fire suppression system. It also includes rough-in for a bathroom with a shower and is structured for a future mezzanine. The exterior features LP siding, an asphalt shingled roof, concrete aprons, and an asphalt lot. The association provides lawn care, snow removal, refuse services, and security. Upcoming additions include entrance gates, security fencing, a wash bay, a dump station, and a lounge. Financing options are available.
Key Highlights
- 1500 sq ft garage condo in the Workshops of Watertown, offering ample space (30'x50').
- Includes in‑floor heat, 100‑amp electrical service, and a fire suppression system.
- Features a 16' w x 14' H insulated garage door with opener and a floor trench drain.
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
$20,340
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
6.88%
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%
$406,800
$406.8K
Cap Rate 7%
$290,571
$290.6K
Cap Rate 9%
$226,000
$226.0K
Market Conditions
NOI Build-Up for 1,500 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
$32.9K $21.96/SF
− Vacancy
−$1.6K −$1.10/SF
EGI
$31.3K $20.86/SF
− OpEx
−$11.0K −$7.30/SF
NOI
$20.3K $13.56/SF
Area
Carver County, MN
Vacancy
5.00%
Lease Rate
$21.96 /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%
$406,800
Cap Rate 7%
$290,571
Cap Rate 9%
$226,000
Alternative Uses
Best Use
Flex RnD
$290.6K
$254.3K – $339.0K
NOI $20,340 @ 7.0% cap · market cap 6.88%
Second Best
Warehouse
$282.7K
$247.3K – $329.8K
NOI $19,787 @ 7.0% cap · market cap 6.70%
Theoretical Best
Office A
$357.9K
$313.1K – $417.5K
NOI $25,051 @ 7.0% cap · market cap 8.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55388, MN
5,984
Population
2,386
Households
2.5
Avg Household Size
39
Median Age
23%
College-Educated
96%
High-School Grad
37.6 sq mi
ZIP Area
159
Density / Sq Mi
$92,273
Median Household Income
$48,955
Median Earnings
$998
Median Rent
$333,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 1500 SF garage condo with many amenities for sale.
Where is this flex space located?
The property is located at 721 Industrial Boulevard Unit D5 Watertown, MN.
What is the asking price?
The asking price for this property is $295,500.
What are key features of this property?
This property features: 1500 sq ft garage condo in the Workshops of Watertown, offering ample space (30'x50').; Includes in‑floor heat, 100‑amp electrical service, and a fire suppression system.; Features a 16' w x 14' H insulated garage door with opener and a floor trench drain.
