Medical/Professional Space Near
For Sale
Contact for pricing
8290 NE University Ave, Fridley, MN
Medical/professional space near Mercy Hospital, opportunity to occupy entire building.
Property Size25,494 SF
Lot Size1.29 Acres
Price / SF$98.06
Days on Market742
Property Features for 8290 NE University Ave
General Information
Standard status
Active
Size
25,494 SF
Lot size
1.29 Acres
Property subtype
OFFICE
Listing Agency:
Davis Real Estate Services Group, LLC
(612) 338-4000
Listed By:
Anne Madyun
(612) 454-4172
Source:
Moodyscre
Added: Sep 1, 2024
Changed: Sep 4
Last Checked: Sep 11 at 12:38PM
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 Davis Real Estate Services Group, LLC
Investment Insights
Based on property information with market context.
This medical/professional space offers the opportunity to occupy an entire building. The property is located near Mercy Hospital – Unity Campus. The first floor previously served as a surgery center. Ample surface parking is available, along with a 2-story parking ramp. The location provides easy access to and from University Avenue. Exterior and common area updates are planned. There is a premier monument and building signage opportunity on University Avenue. The property size is 25,494 square feet.
Key Highlights
- Opportunity to occupy entire medical/professional building.
- Ample parking with surface lot and 2‑story ramp.
- Premier signage opportunity on University Avenue.
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
$166,394
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
6.66%
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%
$3,327,880
$3.3M
Cap Rate 7%
$2,377,057
$2.4M
Cap Rate 9%
$1,848,822
$1.8M
Market Conditions
NOI Build-Up for 25,494 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
$299.8K $11.76/SF
− Vacancy
−$22.5K −$0.88/SF
EGI
$277.3K $10.88/SF
− OpEx
−$110.9K −$4.35/SF
NOI
$166.4K $6.53/SF
Area
Anoka County, MN
Vacancy
7.50%
Lease Rate
$11.76 /SF/Yr
Expense Ratio
40.00%
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%
$3,327,880
Cap Rate 7%
$2,377,057
Cap Rate 9%
$1,848,822
Alternative Uses
Best Use
Office B
$5.05M
$4.42M – $5.89M
NOI $353,641 @ 7.0% cap · market cap 14.15%
Second Best
Healthcare Medical
$2.38M
$2.08M – $2.77M
NOI $166,394 @ 7.0% cap · market cap 6.66%
Theoretical Best
Office A
$7.08M
$6.20M – $8.26M
NOI $495,701 @ 7.0% cap · market cap 19.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
480
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- All Pets Animal Hospital — 5100 Central Ave NE, Columbia Heights, MN 55421
- Fish Olivia DVM — 5100 NE Central Ave, Columbia Heights, MN 55421
- Vetco Total Care Animal Hospital — 753 53rd Ave NE, Fridley, MN 55421
- Petco Vaccination Clinic — 753 53rd Ave NE, Fridley, MN 55421
Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical/professional space near Mercy Hospital, opportunity to occupy entire building.
Where is this medical office space located?
The property is located at 8290 NE University Ave Fridley, MN.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Opportunity to occupy entire medical/professional building.; Ample parking with surface lot and 2‑story ramp.; Premier signage opportunity on University Avenue.
