Operating C-Store For
For Sale
Contact for pricing
3225 40th Ave NW, Rochester, MN
Operating convenience store property available for purchase.
Property Size5,860 SF
Lot Size1.59 Acres
Price / SF$469.28
Days on Market501
Property Features for 3225 40th Ave NW
General Information
Standard status
Active
Size
5,860 SF
Lot size
1.59 Acres
Property subtype
RETAIL
Listing Agency:
Cushman & Wakefield
(952) 831-1000
Listed By:
Thomas Martin
(612) 730-7773
Source:
Moodyscre
Added: Apr 23, 2025
Changed: Sep 3
Last Checked: Sep 4 at 5:09AM
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 Cushman & Wakefield
Investment Insights
Based on property information with market context.
This is an operating convenience store property available for sale. The property has a size of 5860 square feet.
Key Highlights
- Operating C‑Store
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
$77,132
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
2.80%
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%
$1,542,640
$1.5M
Cap Rate 7%
$1,101,886
$1.1M
Cap Rate 9%
$857,022
$857.0K
Market Conditions
NOI Build-Up for 5,860 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
$105.5K $18.00/SF
− Vacancy
−$2.6K −$0.45/SF
EGI
$102.8K $17.55/SF
− OpEx
−$25.7K −$4.39/SF
NOI
$77.1K $13.16/SF
Area
Rochester, MN
Vacancy
2.50%
Lease Rate
$18.00 /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%
$1,542,640
Cap Rate 7%
$1,101,886
Cap Rate 9%
$857,022
Alternative Uses
Best Use
Specialty Retail
$1.10M
$964.2K – $1.29M
NOI $77,132 @ 7.0% cap · market cap 2.80%
Second Best
Retail
$942.3K
$824.5K – $1.10M
NOI $65,959 @ 7.0% cap · market cap 2.40%
Theoretical Best
Office A
$2.26M
$1.97M – $2.63M
NOI $157,989 @ 7.0% cap · market cap 5.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
736
Businesses Nearby
68k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 38%
Groceries 36%
Dining 24%
Home Improvements & Furnishings 2%
Cub Foods
Groceries
24,697 visits/mo
0.5 miles
Kwik Trip
Shops & Services
22,028 visits/mo
0.4 miles
Crumbl Cookies
Dining
8,241 visits/mo
0.4 miles
Jersey Mike's Subs
Dining
5,116 visits/mo
0.4 miles
U.S. Bank
Shops & Services
3,780 visits/mo
0.4 miles
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Hy-Vee Grocery Store — 4221 W Cir Dr NW, Rochester, MN 55901
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Operating convenience store property available for purchase.
Where is this grocery and convenience store located?
The property is located at 3225 40th Ave NW Rochester, MN.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: Operating C‑Store
