Turnkey Machine Shop with
For Sale
$2,500,000
6551 Highway 40, Tioga, ND 58852
Fully equipped machine shop for sale with shop space, a mezzanine for parts storage, and overhead cranes for heavy fabrication.
Property Size19,746 SF
Price / SF$126.61
Days on Market51
Property Features for 6551 Highway 40
General Information
Standard status
Active
Size
19,746 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,732
Amenities
0.00
Building Details
Year Built
1951
Listing Agency:
REAL
Listed By:
Kallie D Bratlien · License #10502
(701) 770-7797
Source:
Clearwaterproperties
Added: Jul 17
Changed: Sep 4
Last Checked: Sep 5 at 7:28AM
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 REAL
Investment Insights
Based on property information with market context.
This turnkey machine shop property includes more than 19,000 square feet of well-equipped shop space, plus a brand-new 50' x 30' addition. A 1,200+ square foot mezzanine provides parts storage along with a locker room and bathroom. The facility is outfitted with more than 23 overhead cranes with capacities from 1,000 lbs up to 6-ton, and eight overhead doors measuring 14' x 14'. Interior improvements include dedicated machining zones, multiple offices, break rooms, and parts areas designed to support workflow.
The site sits on 4.13 acres with yard space suitable for pipe or material storage, future expansion, or additional development. Highway 40 frontage supports high visibility for operations. The sale includes the business components and comes with all inventory, tools, and machinery for a seamless transition for an owner-operator or established firm.
The site sits on 4.13 acres with yard space suitable for pipe or material storage, future expansion, or additional development. Highway 40 frontage supports high visibility for operations. The sale includes the business components and comes with all inventory, tools, and machinery for a seamless transition for an owner-operator or established firm.
Key Highlights
- Fully equipped machine shop with real estate on 4.13 acres and Highway 40 frontage
- Over 19,000 SF of shop space plus a brand‑new 50' x 30' addition
- 1,200+ SF mezzanine for parts storage, locker room, bathroom, and additional space
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
$118,180
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
4.73%
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%
$2,363,600
$2.4M
Cap Rate 7%
$1,688,286
$1.7M
Cap Rate 9%
$1,313,111
$1.3M
Market Conditions
NOI Build-Up for 19,746 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
$177.7K $9.00/SF
− Vacancy
−$8.9K −$0.45/SF
EGI
$168.8K $8.55/SF
− OpEx
−$50.6K −$2.56/SF
NOI
$118.2K $5.98/SF
Area
Williams County, ND
Vacancy
5.00%
Lease Rate
$9.00 /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%
$2,363,600
Cap Rate 7%
$1,688,286
Cap Rate 9%
$1,313,111
Alternative Uses
Best Use
Industrial
$1.69M
$1.48M – $1.97M
NOI $118,180 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.35M
$3.81M – $5.08M
NOI $304,815 @ 7.0% cap · market cap 12.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
22
Businesses Nearby
Explore this area
Business Placement
Demographics for 58852, ND
2,822
Population
1,277
Households
2.2
Avg Household Size
36
Median Age
20%
College-Educated
87%
High-School Grad
310.6 sq mi
ZIP Area
9
Density / Sq Mi
$67,143
Median Household Income
$49,193
Median Earnings
$1,043
Median Rent
$207,200
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Fully equipped machine shop for sale with shop space, a mezzanine for parts storage, and overhead cranes for heavy fabrication.
Where is this manufacturing property located?
The property is located at 6551 Highway 40 Tioga, ND.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Fully equipped machine shop with real estate on 4.13 acres and Highway 40 frontage; Over 19,000 SF of shop space plus a brand‑new 50' x 30' addition; 1,200+ SF mezzanine for parts storage, locker room, bathroom, and additional space
