Side-by-Side
For Sale
$450,000
1094 26th Avenue SE, Minneapolis, MN 55414
Rented two-unit property with separate HVAC and laundry facilities for each residence.
Property Size2,662 SF
Price / SF$169.05
Days on Market24
Property Features for 1094 26th Avenue SE
General Information
Standard status
Active
Size
2,662 SF
Property subtype
Multi-Family
Occupancy
100%
Units
Unit Mix
1 x 3BR/2BA, 1 x 5BR/2BA
Multifamily Units
2
Amenities
AC
in-unit laundry
Building Details
Year Built
1957
Buildings
1
Tenancy
Multi
Listing Agency:
Realty Xperts
(612) 916-0245
Listed By:
Jay Hancock Real Estate
(612) 916-0245
Source:
Jayhancockrealestate
Added: Aug 9
Changed: Aug 31
Last Checked: Aug 31 at 2:41PM
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 Realty Xperts
Investment Insights
Based on property information with market context.
Built in 1957, this side-by-side duplex contains two separately configured residences. The 1096 unit offers 3 bedrooms and 2 bathrooms, while 1094 includes 5 bedrooms and 2 bathrooms. Each side has its own air-conditioning system, furnace, and laundry room.
Both units are leased through August 2027. Residents pay their own gas and electric costs, with the owner responsible for water and trash service. The property has maintained 100% occupancy during 25 years of ownership. New front steps and a sidewalk are scheduled to be completed soon.
Both units are leased through August 2027. Residents pay their own gas and electric costs, with the owner responsible for water and trash service. The property has maintained 100% occupancy during 25 years of ownership. New front steps and a sidewalk are scheduled to be completed soon.
Key Highlights
- Two‑unit side‑by‑side duplex built in 1957
- 1096 unit: 3 bedrooms, 2 bathrooms; leased through August 2027
- 1094 unit: 5 bedrooms, 2 bathrooms; leased through August 2027
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
$38,894
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
8.64%
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%
$777,880
$777.9K
Cap Rate 7%
$555,629
$555.6K
Cap Rate 9%
$432,156
$432.2K
Market Conditions
NOI Build-Up for 2,662 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
$59.1K $22.20/SF
− Vacancy
−$3.5K −$1.33/SF
EGI
$55.6K $20.87/SF
− OpEx
−$16.7K −$6.26/SF
NOI
$38.9K $14.61/SF
Area
Minneapolis, MN
Vacancy
5.98%
Lease Rate
$22.20 /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%
$777,880
Cap Rate 7%
$555,629
Cap Rate 9%
$432,156
Alternative Uses
Best Use
Multifamily LT 5
$555.6K
$486.2K – $648.2K
NOI $38,894 @ 7.0% cap · market cap 8.64%
Second Best
Apartment 5plus
$510.3K
$446.5K – $595.4K
NOI $35,723 @ 7.0% cap · market cap 7.94%
Theoretical Best
Office A
$635.1K
$555.7K – $741.0K
NOI $44,457 @ 7.0% cap · market cap 9.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
905
Businesses Nearby
Explore this area
Business Placement
Demographics for 55414, MN
36,600
Population
15,541
Households
2.4
Avg Household Size
26
Median Age
68%
College-Educated
93%
High-School Grad
3.1 sq mi
ZIP Area
11,806
Density / Sq Mi
$47,004
Median Household Income
$18,386
Median Earnings
$1,368
Median Rent
$454,200
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 - Rented two-unit property with separate HVAC and laundry facilities for each residence.
Where is this duplex located?
The property is located at 1094 26th Avenue SE Minneapolis, MN.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: Two‑unit side‑by‑side duplex built in 1957; 1096 unit: 3 bedrooms, 2 bathrooms; leased through August 2027; 1094 unit: 5 bedrooms, 2 bathrooms; leased through August 2027
