Drive-Through Restaurant with
New
For Sale
$434,000
118 1st Ave NW, Saint Joseph, MN 56374
An existing restaurant layout is supported by a dedicated vehicle lane and on-site parking.
Property Size1,240 SF
Days on Market6
Property Features for 118 1st Ave NW
General Information
Standard status
Active
Size
1,240 SF
Property subtype
Retail
Building Details
Building Size
1,240 SF
Year Built
2012
Listing Agency:
SVN GC Real Estate
Listed By:
Kate Hanson, CCIM
(320) 420-6485
Source:
Svngcre
Added: Sep 30
Last Checked: Oct 4 at 8:24AM
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 SVN GC Real Estate
Investment Insights
Based on property information with market context.
Built in 2012, this drive-through restaurant contains approximately 1,240 square feet arranged for restaurant use. The property includes a drive-through lane, restaurant equipment, on-site parking for approximately 17 vehicles, and a dumpster enclosure.
The site is along Highway 75 in St. Joseph, Minnesota. The roadway recorded approximately 18,609 vehicles per day in 2024 (ADDT).
The site is along Highway 75 in St. Joseph, Minnesota. The roadway recorded approximately 18,609 vehicles per day in 2024 (ADDT).
Key Highlights
- Restaurant building contains approximately 1,240 SF and was built in 2012
- Dedicated drive‑through lane and existing restaurant equipment
- Approximately 17 on‑site parking stalls
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
$17,183
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
3.96%
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%
$343,660
$343.7K
Cap Rate 7%
$245,471
$245.5K
Cap Rate 9%
$190,922
$190.9K
Market Conditions
NOI Build-Up for 1,240 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
$24.8K $20.04/SF
− Vacancy
−$1.9K −$1.56/SF
EGI
$22.9K $18.48/SF
− OpEx
−$5.7K −$4.62/SF
NOI
$17.2K $13.86/SF
Area
Stearns County, MN
Vacancy
7.80%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
25.00%
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%
$343,660
Cap Rate 7%
$245,471
Cap Rate 9%
$190,922
Alternative Uses
Best Use
Specialty Retail
$245.5K
$214.8K – $286.4K
NOI $17,183 @ 7.0% cap · market cap 3.96%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$271.5K
$237.6K – $316.8K
NOI $19,005 @ 7.0% cap · market cap 4.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
332
Businesses Nearby
61k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 83%
Dining 13%
Home Improvements & Furnishings 5%
Kwik Trip
Shops & Services
32,444 visits/mo
0.4 miles
Holiday Station Store
Shops & Services
9,628 visits/mo
0.4 miles
Dollar General
Shops & Services
8,355 visits/mo
0.5 miles
Taco John's
Dining
5,084 visits/mo
0.4 miles
Lee's Ace Hardware
Home Improvements & Furnishings
3,050 visits/mo
0.3 miles
Demographics for 56374, MN
9,943
Population
3,662
Households
2.7
Avg Household Size
33
Median Age
31%
College-Educated
91%
High-School Grad
66.4 sq mi
ZIP Area
150
Density / Sq Mi
$78,415
Median Household Income
$36,851
Median Earnings
$1,134
Median Rent
$281,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - An existing restaurant layout is supported by a dedicated vehicle lane and on-site parking.
Where is this drive through restaurant located?
The property is located at 118 1st Ave NW Saint Joseph, MN.
What is the asking price?
The asking price for this property is $434,000.
What are key features of this property?
This property features: Restaurant building contains approximately 1,240 SF and was built in 2012; Dedicated drive‑through lane and existing restaurant equipment; Approximately 17 on‑site parking stalls
