Historic Office and Flex
For Sale
Contact for pricing
315 5th St N, Fargo, ND 58102
Historic building constructed in 1927 and renovated in 2018, featuring office space plus flex and manufacturing areas.
Property Size25,000 SF
Price / SF$90
Days on Market792
Property Features for 315 5th St N
General Information
Standard status
Active
Size
25,000 SF
Property subtype
OFFICE
Listing Agency:
Horizon Real Estate Group
(701) 478-7600
Listed By:
Brian Tulibaski, MBA
(701) 793-0653
Source:
Moodyscre
Added: Jul 16, 2024
Changed: Aug 16
Last Checked: Sep 14 at 12:39PM
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 Horizon Real Estate Group
Investment Insights
Based on property information with market context.
This historic building was originally constructed in 1927 and underwent a meticulous renovation in 2018. The property offers office space along with flex and manufacturing space, and it includes a large basement to support additional usable area. The building is currently 100% occupied.
Located at 315 5th St N in Fargo, North Dakota, the offering presents an income-oriented profile for office and related space users. The seller is open to entertaining a leasing-back of some or all of the office space, providing additional flexibility for a buyer’s transition.
With the combination of office, flex, and manufacturing space in a renovated, multi-use historic structure, the building supports a range of operational needs within its existing configuration.
Located at 315 5th St N in Fargo, North Dakota, the offering presents an income-oriented profile for office and related space users. The seller is open to entertaining a leasing-back of some or all of the office space, providing additional flexibility for a buyer’s transition.
With the combination of office, flex, and manufacturing space in a renovated, multi-use historic structure, the building supports a range of operational needs within its existing configuration.
Key Highlights
- Historic 25,000 SF building in Fargo, ND originally constructed in 1927 and renovated in 2018
- 100% occupancy with office/office building use
- Includes office space plus flex and manufacturing 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
$201,630
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
8.96%
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%
$4,032,600
$4.0M
Cap Rate 7%
$2,880,429
$2.9M
Cap Rate 9%
$2,240,333
$2.2M
Market Conditions
NOI Build-Up for 25,000 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
$330.0K $13.20/SF
− Vacancy
−$19.8K −$0.79/SF
EGI
$310.2K $12.41/SF
− OpEx
−$108.6K −$4.34/SF
NOI
$201.6K $8.07/SF
Area
Fargo, ND
Vacancy
6.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
35.00%
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%
$4,032,600
Cap Rate 7%
$2,880,429
Cap Rate 9%
$2,240,333
Alternative Uses
Best Use
Office B
$4.19M
$3.66M – $4.88M
NOI $292,950 @ 7.0% cap · market cap 13.02%
Second Best
Flex RnD
$2.88M
$2.52M – $3.36M
NOI $201,630 @ 7.0% cap · market cap 8.96%
Theoretical Best
Office A
$5.42M
$4.75M – $6.33M
NOI $379,620 @ 7.0% cap · market cap 16.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
3,190
Businesses Nearby
Explore this area
Business Placement
Demographics for 58102, ND
30,767
Population
16,757
Households
1.8
Avg Household Size
32
Median Age
45%
College-Educated
95%
High-School Grad
31.6 sq mi
ZIP Area
974
Density / Sq Mi
$56,028
Median Household Income
$31,939
Median Earnings
$829
Median Rent
$235,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Historic building constructed in 1927 and renovated in 2018, featuring office space plus flex and manufacturing areas.
Where is this office building located?
The property is located at 315 5th St N Fargo, ND.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Historic 25,000 SF building in Fargo, ND originally constructed in 1927 and renovated in 2018; 100% occupancy with office/office building use; Includes office space plus flex and manufacturing space
