High-Visibility Commercial Building For
For Sale
$9,950,000
1237 W Divide Ave, Bismarck, ND 58501
Landmark building on high-traffic corner with existing leases.
Property Size64,286 SF
Lot Size4.91 Acres
Price / SF$154.78
Days on Market159
Property Features for 1237 W Divide Ave
General Information
Standard status
Active
Size
64,286 SF
Lot size
4.91 Acres
Property subtype
Office
Building Details
Building Size
64,286 SF
Year Built
1980
Listing Agency:
Rise Property Brokers
(701) 400-4445
Listed By:
Jon Lee · License #ND #11237
Source:
Risepropertybrokers
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 11 at 6:38AM
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 Rise Property Brokers
Investment Insights
Based on property information with market context.
Constructed in 1980 and zoned CG, this property provides a versatile space suitable for various uses. The building features a clear span design, red iron construction, and has undergone several updates. It benefits from high visibility due to its location on the high-traffic corner of I-94 and Divide, experiencing 13,500 vehicles per day (VPD) on W Divide Ave and 19,335 VPD on I-94/Schafer Street. The property is ADA compliant, heated, and insulated, with a maintenance-free exterior. The building, a recognizable landmark near Bismarck State College, the Highland Acres Neighborhood, and the Bismarck Community Bowl, includes large windows, a lobby/reception area, a conference room, private offices, common restrooms, and fire sprinklers. It also offers pylon signage and abundant parking. The building size is 64,286 square feet, situated on a 214,009-square-foot lot. The 2024 taxes are $117,328.90, with a specials balance of $48,902.26 and specials installments of $8,554.52. The property has a 7.1% cap rate.
Key Highlights
- High‑Traffic Corner Location: Situated at the intersection of I‑94 and Divide, ensuring maximum visibility and exposure.
- Existing Lease Agreements: Provides immediate income and investment potential.
- High Visibility Landmark Building: A recognizable landmark in the Bismarck area.
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
$834,952
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
8.39%
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%
$16,699,040
$16.7M
Cap Rate 7%
$11,927,886
$11.9M
Cap Rate 9%
$9,277,244
$9.3M
Market Conditions
NOI Build-Up for 64,286 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
$1.30M $20.16/SF
− Vacancy
−$182.7K −$2.84/SF
EGI
$1.11M $17.32/SF
− OpEx
−$278.3K −$4.33/SF
NOI
$835.0K $12.99/SF
Area
Burleigh County, ND
Vacancy
14.10%
Lease Rate
$20.16 /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%
$16,699,040
Cap Rate 7%
$11,927,886
Cap Rate 9%
$9,277,244
Alternative Uses
Best Use
Office B
$11.93M
$10.44M – $13.92M
NOI $834,952 @ 7.0% cap · market cap 8.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.30M
$13.39M – $17.85M
NOI $1,070,859 @ 7.0% cap · market cap 10.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
420
Businesses Nearby
Explore this area
Business Placement
Demographics for 58501, ND
28,388
Population
13,445
Households
2.1
Avg Household Size
38
Median Age
35%
College-Educated
95%
High-School Grad
22.8 sq mi
ZIP Area
1,245
Density / Sq Mi
$69,796
Median Household Income
$45,237
Median Earnings
$938
Median Rent
$276,000
Median Home Value
Market
Vacancy Rate% for Office 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?
Office building - Landmark building on high-traffic corner with existing leases.
Where is this office building located?
The property is located at 1237 W Divide Ave Bismarck, ND.
What is the asking price?
The asking price for this property is $9,950,000.
What are key features of this property?
This property features: High‑Traffic Corner Location: Situated at the intersection of I‑94 and Divide, ensuring maximum visibility and exposure.; Existing Lease Agreements: Provides immediate income and investment potential.; High Visibility Landmark Building: A recognizable landmark in the Bismarck area.
