Four Subway Restaurants
For Sale
$268,250
100 S Main St, Stewartville, MN 55976
Portfolio of four Subway restaurants in Minnesota for sale.
Property Size900 SF
Price / SF$298.06
Days on Market156
Property Features for 100 S Main St
General Information
Standard status
Active
Size
900 SF
Property subtype
Restaurant
Lease Type
NN
Amenities
Part of a Four Store Subway Portfolio - All Four Recently Signed Early Five Year Renewals, Confirming Tenant's Commitment to Each Location
Condo Unit with a Double Net Lease through November 2032
4.8% Rent Increase in December 2026 Increases the Cap Rate to 9.61%
Long Term Occupancy Since 1991
Building Details
Building Size
900 SF
Listing Agency:
Marcus & Millichap - Milwaukee
Listed By:
Jeff Rowlett · License #License(s): WI: 74743-94, IL: 471.016866
(262) 364-1924
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 8
Last Checked: Sep 5 at 3:53AM
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 Marcus & Millichap - Milwaukee
Investment Insights
Based on property information with market context.
This portfolio features four Subway restaurants located in Byron, St. Charles, Stewartville, and Caledonia, Minnesota. Each location has been in operation for over 20 years. All four leases have been extended for five years.
Key Highlights
- Portfolio of four Subway restaurant locations.
- All four locations have operated as Subways for over 20 years.
- All four leases were recently extended for five years.
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
$10,869
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
4.05%
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%
$217,380
$217.4K
Cap Rate 7%
$155,271
$155.3K
Cap Rate 9%
$120,767
$120.8K
Market Conditions
NOI Build-Up for 900 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
$15.3K $17.04/SF
− Vacancy
−$843 −$0.94/SF
EGI
$14.5K $16.10/SF
− OpEx
−$3.6K −$4.03/SF
NOI
$10.9K $12.08/SF
Area
Olmsted County, MN
Vacancy
5.50%
Lease Rate
$17.04 /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%
$217,380
Cap Rate 7%
$155,271
Cap Rate 9%
$120,767
Alternative Uses
Best Use
Specialty Retail
$155.3K
$135.9K – $181.2K
NOI $10,869 @ 7.0% cap · market cap 4.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$237.4K
$207.7K – $277.0K
NOI $16,619 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
291
Businesses Nearby
33k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 89%
Home Improvements & Furnishings 6%
Dining 5%
Kwik Trip
Shops & Services
11,877 visits/mo
0.3 miles
Stewartville #2
Shops & Services
7,417 visits/mo
0.5 miles
Dollar Tree
Shops & Services
5,674 visits/mo
0.1 miles
Alliance Credit Union
Shops & Services
2,442 visits/mo
0.1 miles
Tiger Ace Hardware
Home Improvements & Furnishings
1,925 visits/mo
0.1 miles
Demographics for 55976, MN
8,338
Population
3,462
Households
2.4
Avg Household Size
37
Median Age
30%
College-Educated
96%
High-School Grad
91.0 sq mi
ZIP Area
92
Density / Sq Mi
$79,044
Median Household Income
$49,839
Median Earnings
$977
Median Rent
$277,700
Median Home Value
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?
Conventional restaurant - Portfolio of four Subway restaurants in Minnesota for sale.
Where is this conventional restaurant located?
The property is located at 100 S Main St Stewartville, MN.
What is the asking price?
The asking price for this property is $268,250.
What are key features of this property?
This property features: Portfolio of four Subway restaurant locations.; All four locations have operated as Subways for over 20 years.; All four leases were recently extended for five years.
