St. Michael Retail
For Sale
Contact for pricing
701 Central Ave E, MN
Freestanding building with drive-thru in St. Michael's main trade area.
Property Size8,700 SF
Lot Size1.53 Acres
Price / SF$160.92
Days on Market1299
Property Features for 701 Central Ave E
General Information
Standard status
Active
Size
8,700 SF
Lot size
1.53 Acres
Property subtype
RETAIL
Properties For Sale
at 701 Central Ave E Contact us- Floor
- 1
- Size
- 8,700 SF
- Type
- RETAIL
- Availability
- AVAILABLE, Now
- Sublease
- No
Highland Bank for Lease or Sale
• Traffic counts average 19,400 vehicles per day in
front of the property on...
show more
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Listing Agency:
Upland Real Estate Group, Inc
(612) 436-1122
Listed By:
Chad Sturm · License #20070429
(612) 436-1122
Source:
Moodyscre
Added: Jan 18, 2023
Changed: Aug 8
Last Checked: May 19 at 10:36PM
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 Upland Real Estate Group, Inc
Investment Insights
Based on property information with market context.
This freestanding building is located in the main trade area of St. Michael and presents a drive-thru opportunity. The property benefits from high traffic counts, averaging 19,400 vehicles per day on Central Ave E. It is situated across from Cub Foods, the only grocer in the city. The location is near multiple corporate headquarters, including J&B’s, Die Technology and Nanotech Precision, and New Plastics Plus, Inc. The trade area is experiencing significant commercial development. Area retailers include Cub Foods, CVS, Walgreens, Subway, Domino’s, and O’Reilly Auto Parts. The property is located 25 minutes from downtown Minneapolis and 35 minutes from St. Cloud. According to Life in Minnesota, St. Michael is ranked the #3 best city to live in Minnesota, and the St. Michael Public School District is ranked #16 in the state by U.S. News. The property offers 8,700 square feet of space.
Key Highlights
- High traffic location with 19,400 vehicles per day.
- Drive‑thru opportunity.**
- Located in the main trade area of St. Michael.
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
$109,816
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
7.84%
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%
$2,196,320
$2.2M
Cap Rate 7%
$1,568,800
$1.6M
Cap Rate 9%
$1,220,178
$1.2M
Market Conditions
NOI Build-Up for 8,700 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
$156.6K $18.00/SF
− Vacancy
−$10.2K −$1.17/SF
EGI
$146.4K $16.83/SF
− OpEx
−$36.6K −$4.21/SF
NOI
$109.8K $12.62/SF
Area
MN
Vacancy
6.50%
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%
$2,196,320
Cap Rate 7%
$1,568,800
Cap Rate 9%
$1,220,178
Alternative Uses
Best Use
Specialty Retail
$1.57M
$1.37M – $1.83M
NOI $109,816 @ 7.0% cap · market cap 7.84%
Second Best
Retail
$1.37M
$1.20M – $1.59M
NOI $95,679 @ 7.0% cap · market cap 6.83%
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,334 @ 7.0% cap · market cap 10.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
99
Businesses Nearby
16k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Medford
Shops & Services
15,741 visits/mo
0.5 miles
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - Freestanding building with drive-thru in St. Michael's main trade area.
Where is this storefront property located?
The property is located at 701 Central Ave E MN.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: High traffic location with 19,400 vehicles per day.; Drive‑thru opportunity.**; Located in the main trade area of St. Michael.
