Building Details

Year Built 2004

Buildings 1

Listing Agency: Edina Realty Inc - St Paul r***@edinarealty.com Show Phone

Listed By: Ray Hitchcock Show Phone

Source: Moodyscre

Added: Apr 11, 2025 Changed: Aug 22 Last Checked: Aug 21 at 1:57PM

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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 Edina Realty Inc - St Paul

Investment Insights

Based on property information with market context.

Stand-alone drive-through restaurant building offered with the business, all equipment, and the building. The property includes a large kitchen area designed for catering prep, walk-in coolers, ample storage, and a restaurant sitting area. The building is supported by a drive-through window and includes signage, and it was constructed in 2004.

The building sits on a .98-acre lot with ample parking. The property is located on Stillwater Blvd near Stillwater High School and provides easy access to Hwy 36.

This location previously operated as a KFC restaurant. The property may also be purchased as a stand-alone building.

Key Highlights

• Built in 2004 drive‑through restaurant building
• .98‑acre lot with ample parking
• Drive‑through window plus signage on Stillwater Blvd

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

$56,816

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

3.55%

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%

$1,136,320 $1.1M

Cap Rate 7%

$811,657 $811.7K

Cap Rate 9%

$631,289 $631.3K

Market Conditions

NOI Build-Up for 3,751 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

$81.0K $21.60/SF

− Vacancy

−$5.3K −$1.40/SF

EGI

$75.8K $20.20/SF

− OpEx

−$18.9K −$5.05/SF

NOI

$56.8K $15.15/SF

Area

Washington County, MN

Vacancy

6.50%

Lease Rate

$21.60 /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%

$1,136,320

Cap Rate 7%

$811,657

Cap Rate 9%

$631,289

Alternative Uses

Best Use

Specialty Retail

$811.7K

$710.2K – $946.9K (±1% cap)

NOI $56,816 @ 7.0% cap · market cap 3.55%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.04M

$911.7K – $1.22M (±1% cap)

NOI $72,934 @ 7.0% cap · market cap 4.56%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Drive through restaurants

Suggested Use

Top Pick Law Firm Parking Lot & Garage Storage Facility Electrical Service Grocery & Convenience Store (Bike/Boat/Book/etc) Store

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

Turnkey business

Opportunity

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

644

Businesses Nearby

Explore this area Business Placement

Demographics for 55082, MN

36,441

Population

15,493

Households

2.4

Avg Household Size

46

Median Age

53%

College-Educated

97%

High-School Grad

79.2 sq mi

ZIP Area

460

Density / Sq Mi

$117,538

Median Household Income

$58,615

Median Earnings

$1,439

Median Rent

$459,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this drive through restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Drive through restaurant - Stand-alone drive-through restaurant building built in 2004 with ample parking, kitchen prep space, and walk-in coolers.

Where is this drive through restaurant located?

The property is located at 5920 Neal Ave N Oak Park Heights, MN.

What is the asking price?

The asking price for this property is $1,600,000.

What are key features of this property?

This property features: Built in 2004 drive‑through restaurant building; .98‑acre lot with ample parking; Drive‑through window plus signage on Stillwater Blvd