Listing Agency: Close-Converse Commercial Properties Show Phone

Listed By: Christopher C. Close Show Phone

Source: Moodyscre

Added: Feb 21, 2025 Changed: Aug 8 Last Checked: Aug 10 at 6:29AM

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Investment Insights

Based on property information with market context.

Located along the high-traffic corridor of Hwy 210 in Deerwood, this property is currently operating as Traditions at Cuyuna Falls Mini Golf. The property includes a 1204 square foot retail building, a large parking lot, and ample outside display space. Existing mini golf equipment, water wars, human foosball, and a frozen yogurt counter are included with the purchase. This property offers diverse repurposing options and is suitable for expanding the existing concept or launching something new.

Key Highlights

• Prime location on high‑traffic Hwy 210.
• Versatile retail building on the property.
• Existing mini golf equipment, water wars, and human foosball included.

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

$11,165

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

2.98%

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%

$223,300 $223.3K

Cap Rate 7%

$159,500 $159.5K

Cap Rate 9%

$124,056 $124.1K

Market Conditions

NOI Build-Up for 1,204 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

$17.3K $14.40/SF

− Vacancy

−$1.4K −$1.15/SF

EGI

$16.0K $13.25/SF

− OpEx

−$4.8K −$3.97/SF

NOI

$11.2K $9.27/SF

Area

Crow Wing County, MN

Vacancy

8.00%

Lease Rate

$14.40 /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%

$223,300

Cap Rate 7%

$159,500

Cap Rate 9%

$124,056

Alternative Uses

Best Use

Retail

$159.5K

$139.6K – $186.1K (±1% cap)

NOI $11,165 @ 7.0% cap · market cap 2.98%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$255.6K

$223.7K – $298.2K (±1% cap)

NOI $17,892 @ 7.0% cap · market cap 4.77%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storefront properties

Suggested Use

Top Pick Parking Lot & Garage Building Supply Auto Repair Shop Storage Facility Furniture & Home Goods Bakery

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

10

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56444, MN

3,044

Population

2,579

Households

1.2

Avg Household Size

54

Median Age

38%

College-Educated

95%

High-School Grad

51.7 sq mi

ZIP Area

59

Density / Sq Mi

$74,265

Median Household Income

$42,802

Median Earnings

$850

Median Rent

$318,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

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Frequently Asked Questions

What type of property is this?

Storefront property - Retail property with mini golf and high traffic location.

Where is this storefront property located?

The property is located at 24228 Hwy 210 Deerwood, MN.

What is the asking price?

The asking price for this property is $375,000.

What are key features of this property?

This property features: Prime location on high‑traffic Hwy 210.; Versatile retail building on the property.; Existing mini golf equipment, water wars, and human foosball included.