Manufacturing Building with Shop
For Sale
$435,000
1270 4th Ave SW, Chisholm, MN 55719
COMMERCIAL, Chisholm, MN
Property Size7,642 SF
Lot Size3.10 Acres
Price / SF$56.92
Days on Market95
Property Features for 1270 4th Ave SW
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
HWY 169 to Chisholm, go north on West Rd, then west on Iron Drive to north on 4th Ave SW. Property on east side of 4th Ave SW.
Subdivision
LSAR
Standard status
Active
Size
7,642 SF
Lot size
3.10 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
2910
Utilities
Heating system
Forced Air, Natural Gas
Building Details
Year built
1984
Number of units
1
Roof type
Shingle
Listing Agency:
Sunrise Real Estate, LLC
Listed By:
Mike Dodge · License #40469330
(218) 341-0645
Added: Jun 10
Changed: Sep 12
Last Checked: Sep 12 at 6:06PM
MLS# 6120602
Copyright © 2026 Lake Superior Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This manufacturing property includes 7,642 square feet of building area on 3.1 acres, with a combination of heated and unheated shop space. The west shop measures 40 x 80 feet and has a 16 x 16-foot overhead door, 20-foot ceilings, and interior iron for a hoist system. A wall may be opened to connect it with the southeast shop, which measures 30 x 40 feet plus and includes a 14 x 14-foot door, ceilings exceeding 16 feet, insulation, an overhead hoist, and three-phase power. The east shop measures 60 x 40 feet plus a 32 x 28-foot north section, with a 12 x 12-foot overhead door, 13-foot ceilings in the main area, insulation, and heat.
The property is positioned along Highway 169 and Iron Drive in Chisholm, with an open site that provides substantial laydown space. Grounds and parking areas are maintained, while the roof, structural panels, and wood exterior are also described as well maintained. The building dates to 1984 and is heated by forced air using natural gas.
The property is positioned along Highway 169 and Iron Drive in Chisholm, with an open site that provides substantial laydown space. Grounds and parking areas are maintained, while the roof, structural panels, and wood exterior are also described as well maintained. The building dates to 1984 and is heated by forced air using natural gas.
Key Highlights
- 3.1‑acre industrial site with 7,642 square feet of building area
- West shop: 40 x 80 feet, 16 x 16‑foot overhead door, and 20‑foot ceilings
- Southeast shop: 30 x 40 feet plus, 14 x 14‑foot door, overhead hoist, and three‑phase power
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
$36,705
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
8.44%
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%
$734,100
$734.1K
Cap Rate 7%
$524,357
$524.4K
Cap Rate 9%
$407,833
$407.8K
Market Conditions
NOI Build-Up for 7,642 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
$44.9K $5.88/SF
− Vacancy
−$1.8K −$0.23/SF
EGI
$43.2K $5.65/SF
− OpEx
−$6.5K −$0.85/SF
NOI
$36.7K $4.80/SF
Area
St. Louis County, MN
Vacancy
3.90%
Lease Rate
$5.88 /SF/Yr
Expense Ratio
15.00%
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%
$734,100
Cap Rate 7%
$524,357
Cap Rate 9%
$407,833
Alternative Uses
Best Use
Flex RnD
$2.57M
$2.25M – $3.00M
NOI $179,843 @ 7.0% cap · market cap 41.34%
Second Best
Warehouse
$524.4K
$458.8K – $611.8K
NOI $36,705 @ 7.0% cap · market cap 8.44%
Theoretical Best
Specialty Retail
$2.96M
$2.59M – $3.46M
NOI $207,511 @ 7.0% cap · market cap 47.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
96
Businesses Nearby
Explore this area
Business Placement
Demographics for 55719, MN
5,668
Population
2,568
Households
2.2
Avg Household Size
43
Median Age
16%
College-Educated
93%
High-School Grad
84.3 sq mi
ZIP Area
67
Density / Sq Mi
$63,497
Median Household Income
$38,045
Median Earnings
$784
Median Rent
$121,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Expansive industrial site with heated and unheated work areas, overhead doors, hoist systems, and three-phase power.
Where is this manufacturing property located?
The property is located at 1270 4th Ave SW Chisholm, MN.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: 3.1‑acre industrial site with 7,642 square feet of building area; West shop: 40 x 80 feet, 16 x 16‑foot overhead door, and 20‑foot ceilings; Southeast shop: 30 x 40 feet plus, 14 x 14‑foot door, overhead hoist, and three‑phase power
