Retail Property in West
For Sale
Contact for pricing
4609-4615 Grand Ave, Duluth, MN
Retail property in Duluth's West Duluth neighborhood.
Property Size15,631 SF
Lot Size0.91 Acres
Price / SF$150.79
Days on Market676
Property Features for 4609-4615 Grand Ave
General Information
Standard status
Active
Size
15,631 SF
Lot size
0.91 Acres
Property subtype
RETAIL
Listing Agency:
Mid-America Real Estate-Minnesota LLC
(952) 897-7833
Listed By:
Amy Senn
(952) 897-7833
Source:
Moodyscre
Added: Oct 15, 2024
Changed: Aug 8
Last Checked: Aug 20 at 1:56PM
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 Mid-America Real Estate-Minnesota LLC
Investment Insights
Based on property information with market context.
This retail property is located in the West Duluth neighborhood, an area described as a 'hidden gem'. The surrounding area has a population of over 30,000 people within a 3-mile radius. The property benefits from a busy intersection with a traffic volume of 20,803 vehicles per day. The city of Duluth has a low retail vacancy rate of 2% and is the second largest economy in the state, serving a trade area of over 548,000 people. A new 10-year lease is in place with Goodwill, with net income increasing by an average of 2.79% annually during the first 5 years. Goodwill True North has a history of over 100 years, operating 11 stores across Northern Minnesota and Wisconsin. The property has a new silicone roof coating with a 15-year total system warranty. The area is a college town with over 25,000 students. The property has a size of 15,631 square feet.
Key Highlights
- New 10‑Year Goodwill Lease with increasing net income (2.79% annually on average for the first 5 years).
- Located in a busy intersection with high traffic volume (20,803 VPD).
- Low retail vacancy rate (2%) in Duluth with high barriers to entry.
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
$147,713
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
6.27%
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%
$2,954,260
$3.0M
Cap Rate 7%
$2,110,186
$2.1M
Cap Rate 9%
$1,641,256
$1.6M
Market Conditions
NOI Build-Up for 15,631 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
$234.5K $15.00/SF
− Vacancy
−$23.4K −$1.50/SF
EGI
$211.0K $13.50/SF
− OpEx
−$63.3K −$4.05/SF
NOI
$147.7K $9.45/SF
Area
St. Louis County, MN
Vacancy
10.00%
Lease Rate
$15.00 /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%
$2,954,260
Cap Rate 7%
$2,110,186
Cap Rate 9%
$1,641,256
Alternative Uses
Best Use
Retail
$2.11M
$1.85M – $2.46M
NOI $147,713 @ 7.0% cap · market cap 6.27%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.06M
$5.31M – $7.07M
NOI $424,445 @ 7.0% cap · market cap 18.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
714
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Garden Center — Duluth, MN 55807
Frequently Asked Questions
What type of property is this?
Storefront property - Retail property in Duluth's West Duluth neighborhood.
Where is this storefront property located?
The property is located at 4609-4615 Grand Ave Duluth, MN.
What is the asking price?
The asking price for this property is $2,357,000.
What are key features of this property?
This property features: New 10‑Year Goodwill Lease with increasing net income (2.79% annually on average for the first 5 years).; Located in a busy intersection with high traffic volume (20,803 VPD).; Low retail vacancy rate (2%) in Duluth with high barriers to entry.
