Listing Agency: Titus Commercial Real Estate

Listed By: Mike A Brass · License #40630577 Show Phone

Source: Moodyscre

Added: Apr 20 Changed: Sep 6 Last Checked: Sep 13 at 10:20AM

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Investment Insights

Based on property information with market context.

This general industrial warehouse offers 20’ clear height and a large 16’W x 14’H drive-in door for straightforward loading and access. The space includes a mezzanine, in-floor heat, LED lighting, and large windows to support day-to-day operations. The building is sprinklered, with drains featuring a flammable waste trap, and provides 200 amp | 120/208 volt power.

The property is located at 13025 Fenway Blvd N in Hugo, MN 55038. A fence between each building encloses a middle area, providing separation within the fenced layout.

Zoned I-3 General Industrial, the warehouse is well-suited for general industrial uses under the current zoning classification.

Key Highlights

• 20’ clear height warehouse with large windows
• Large 16’W x 14’H drive‑in door
• Sprinklered with in‑floor heat

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

$51,936

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

6.11%

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%

$1,038,720 $1.0M

Cap Rate 7%

$741,943 $741.9K

Cap Rate 9%

$577,067 $577.1K

Market Conditions

NOI Build-Up for 3,937 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

$63.8K $16.20/SF

− Vacancy

−$2.7K −$0.68/SF

EGI

$61.1K $15.52/SF

− OpEx

−$9.2K −$2.33/SF

NOI

$51.9K $13.19/SF

Area

Washington County, MN

Vacancy

4.20%

Lease Rate

$16.20 /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%

$1,038,720

Cap Rate 7%

$741,943

Cap Rate 9%

$577,067

Alternative Uses

Best Use

Warehouse

$741.9K

$649.2K – $865.6K (±1% cap)

NOI $51,936 @ 7.0% cap · market cap 6.11%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.09M

$956.9K – $1.28M (±1% cap)

NOI $76,550 @ 7.0% cap · market cap 9.01%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Warehouses

Suggested Use

Top Pick Real Estate Agency Building Supply Auto Parts Store Hair Salon Pharmacy Electrical Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

20 ft

Clear height

1

Drive-in doors

Yes

Sprinkler system

Yes

Fenced yard

Location Intelligence

Trade Area within ½ mile

113

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 55038, MN

23,735

Population

9,355

Households

2.5

Avg Household Size

39

Median Age

49%

College-Educated

98%

High-School Grad

50.5 sq mi

ZIP Area

470

Density / Sq Mi

$127,194

Median Household Income

$67,946

Median Earnings

$1,844

Median Rent

$408,000

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this warehouses located? What is the asking price? Find similar properties What are key features of this property?

Similar Off Market Nearby

• Eagle's Landing Garage Condos — 13025 Fenway Blvd N Unit B300, Hugo, MN 55038
• Public Storage — 13465 Fenway Blvd Cir N, Hugo, MN 55038

Frequently Asked Questions

What type of property is this?

Warehouse - Industrial warehouse with 20-foot clear height, a large drive-in door, sprinkler system, and in-floor heat.

Where is this warehouse located?

The property is located at 13025 Fenway Blvd N Hugo, MN.

What is the asking price?

The asking price for this property is $850,000.

What are key features of this property?

This property features: 20’ clear height warehouse with large windows; Large 16’W x 14’H drive‑in door; Sprinklered with in‑floor heat