Minneapolis AutoZone Investment
For Sale
$3,520,000
2610 East Lake Street, Minneapolis, MN 55406
NNN leased AutoZone in Minneapolis with long-term lease.
Property Size10,886 SF
Lot Size0.75 Acres
Price / SF$323.35
Days on Market141
Property Features for 2610 East Lake Street
General Information
Standard status
Active
Size
10,886 SF
Lot size
0.75 Acres
Property subtype
Retail
Listing Agency:
(612) 336-4322
Listed By:
AJ Prins
(612) 336-4322
Source:
Cbre
Added: Mar 25
Changed: Aug 8
Last Checked: Aug 8 at 6:27AM
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 AJ Prins
Investment Insights
Based on property information with market context.
This single-story, 10,886 square foot AutoZone facility, constructed in 2021, is located on a 0.75-acre urban infill site in Minneapolis, MN. The property is situated on a signalized corner and has been occupied by AutoZone since 2011. In 2021, the building was rebuilt, and AutoZone committed to a 15-year lease. AutoZone, Inc. is a retailer and distributor of automotive replacement parts and accessories in the United States, operating over 7,000 stores across the U.S., Mexico, Puerto Rico, Brazil, and other international markets. AutoZone serves DIY customers, commercial businesses, mechanics, repair shops, and professional installers through its commercial sales program. In 2024, AutoZone reported revenues of $18.49 Billion, a 5.92% increase compared to 2023. The company is publicly traded (AZO) with an investment-grade credit rating of BBB (S&P). The property is located within the Minneapolis-St. Paul area, the nation’s 16th largest MSA with approximately 3.6 million residents. Over 500,000 people live within a 5-mile radius of the AutoZone site. The location is shadow-anchored by major retail traffic drivers such as Target, Cub Foods, and Aldi. The property has 11 years of lease term remaining, with 10% rent increases every five years. AutoZone has demonstrated their commitment to this location by rebuilding the facility in 2021 and executing a long-term 15-year lease. This site is strategically positioned to meet the increasing demand for Auto Parts in a densely populated trade area.
Key Highlights
- Long‑term lease with 11 years remaining and guaranteed by investment‑grade tenant (BBB S&P).
- Significant 10% rent increases every five years, providing increasing income stream.
- Brand new build‑to‑suit construction in 2021, demonstrating AutoZone's commitment to the location.
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
$139,287
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
3.96%
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%
$2,785,740
$2.8M
Cap Rate 7%
$1,989,814
$2.0M
Cap Rate 9%
$1,547,633
$1.5M
Market Conditions
NOI Build-Up for 10,886 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
$207.7K $19.08/SF
− Vacancy
−$8.7K −$0.80/SF
EGI
$199.0K $18.28/SF
− OpEx
−$59.7K −$5.48/SF
NOI
$139.3K $12.80/SF
Area
ZIP 55406
Vacancy
4.20%
Lease Rate
$19.08 /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%
$2,785,740
Cap Rate 7%
$1,989,814
Cap Rate 9%
$1,547,633
Alternative Uses
Best Use
Industrial
$1.99M
$1.74M – $2.32M
NOI $139,287 @ 7.0% cap · market cap 3.96%
Second Best
Retail
$1.92M
$1.68M – $2.23M
NOI $134,077 @ 7.0% cap · market cap 3.81%
Theoretical Best
Office A
$3.18M
$2.78M – $3.71M
NOI $222,666 @ 7.0% cap · market cap 6.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,312
Businesses Nearby
142k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 46%
Shops & Services 30%
Apparel 21%
Electronics 1%
Raising Cane's Chicken Fingers
Dining
34,962 visits/mo
0.2 miles
McDonald's
Dining
26,269 visits/mo
0.3 miles
Burlington
Apparel
24,562 visits/mo
0.4 miles
MotoMart
Shops & Services
17,702 visits/mo
0.4 miles
Dollar Tree
Shops & Services
15,879 visits/mo
0.3 miles
Demographics for 55406, MN
34,588
Population
17,439
Households
2
Avg Household Size
39
Median Age
56%
College-Educated
93%
High-School Grad
5.0 sq mi
ZIP Area
6,918
Density / Sq Mi
$91,865
Median Household Income
$56,291
Median Earnings
$1,276
Median Rent
$335,500
Median Home Value
Market
Vacancy Rate% for Retail in Minneapolis, MN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Sandberg Imports — 3511 Minnehaha Ave, Minneapolis, MN 55406
- Powderhorn Garage — 2004 E 35th St, Minneapolis, MN 55407
- Hayford Auto & Transmission — 3403 Cedar Ave, Minneapolis, MN 55407
- Alexander's Import Auto Repair — 2904 E 35th St, Minneapolis, MN 55406
- CEDAR TOWING & AUCTION — 3527 Cheatham Ave, Minneapolis, MN 55406
Frequently Asked Questions
What type of property is this?
Auto shop - NNN leased AutoZone in Minneapolis with long-term lease.
Where is this auto shop located?
The property is located at 2610 East Lake Street Minneapolis, MN.
What is the asking price?
The asking price for this property is $3,520,000.
What are key features of this property?
This property features: Long‑term lease with 11 years remaining and guaranteed by investment‑grade tenant (BBB S&P).; Significant 10% rent increases every five years, providing increasing income stream.; Brand new build‑to‑suit construction in 2021, demonstrating AutoZone's commitment to the location.
