Medical Center
For Sale
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3329 University Ave SE, Minneapolis, MN 55414
Three Minnesota treatment-center properties under NNN leases with annual rent increases and outpatient operations.
Property Size53,071 SF
Price / SF$267.77
Days on Market606
Property Features for 3329 University Ave SE
General Information
Standard status
Active
Size
53,071 SF
Property subtype
OFFICE
Building Details
Buildings
3
Tenancy
Multi
Listing Agency:
Upland Real Estate Group, Inc
(612) 332-6600
Listed By:
Keith A Sturm · License #81883
(612) 376-4488
Source:
Moodyscre
Added: Jan 17, 2025
Changed: Sep 3
Last Checked: Sep 14 at 11:18AM
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 Upland Real Estate Group, Inc
Investment Insights
Based on property information with market context.
This portfolio includes three medical treatment centers in Minnesota totaling 53,071 square feet. The locations have operated as either Opiate Treatment Centers or Behavioral Health Centers for 20 to 50 years. The Minneapolis property is located at 3329 University Ave SE, Minneapolis, MN 55414, and operates on an outpatient-only basis.
The properties are subject to NNN leases with annual rent increases ranging from 2.75% - 5.00%, with the remainder of CPI increases carried forward indefinitely. Behavioral Health Group has a lease signed by BHG with a guaranty by BHG Holdings LLC. Cedar Ridge and Twin Town have guaranties by EOSIS, formerly Meridian Behavioral Health, LLC. BHG operates 115 locations in 21 states, while EOSIS operates 21 locations.
The properties are subject to NNN leases with annual rent increases ranging from 2.75% - 5.00%, with the remainder of CPI increases carried forward indefinitely. Behavioral Health Group has a lease signed by BHG with a guaranty by BHG Holdings LLC. Cedar Ridge and Twin Town have guaranties by EOSIS, formerly Meridian Behavioral Health, LLC. BHG operates 115 locations in 21 states, while EOSIS operates 21 locations.
Key Highlights
- Three Minnesota medical treatment centers totaling 53,071 square feet
- NNN leases with annual rent increases ranging from 2.75% - 5.00%
- Locations have operated as Opiate Treatment Centers or Behavioral Health Centers for 20 to 50 years
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
$687,800
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
4.84%
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%
$13,756,000
$13.8M
Cap Rate 7%
$9,825,714
$9.8M
Cap Rate 9%
$7,642,222
$7.6M
Market Conditions
NOI Build-Up for 53,071 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
$1.27M $24.00/SF
− Vacancy
−$127.4K −$2.40/SF
EGI
$1.15M $21.60/SF
− OpEx
−$458.5K −$8.64/SF
NOI
$687.8K $12.96/SF
Area
Minneapolis, MN
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
40.00%
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%
$13,756,000
Cap Rate 7%
$9,825,714
Cap Rate 9%
$7,642,222
Alternative Uses
Best Use
Healthcare Medical
$9.83M
$8.60M – $11.46M
NOI $687,800 @ 7.0% cap · market cap 4.84%
Second Best
Office B
$9.47M
$8.29M – $11.05M
NOI $663,211 @ 7.0% cap · market cap 4.67%
Theoretical Best
Office A
$12.66M
$11.08M – $14.77M
NOI $886,315 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,626
Businesses Nearby
Explore this area
Business Placement
Demographics for 55414, MN
36,600
Population
15,541
Households
2.4
Avg Household Size
26
Median Age
68%
College-Educated
93%
High-School Grad
3.1 sq mi
ZIP Area
11,806
Density / Sq Mi
$47,004
Median Household Income
$18,386
Median Earnings
$1,368
Median Rent
$454,200
Median Home Value
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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?
Medical center - Three Minnesota treatment-center properties under NNN leases with annual rent increases and outpatient operations.
Where is this medical center located?
The property is located at 3329 University Ave SE Minneapolis, MN.
What is the asking price?
The asking price for this property is $14,210,805.
What are key features of this property?
This property features: Three Minnesota medical treatment centers totaling 53,071 square feet; NNN leases with annual rent increases ranging from 2.75% - 5.00%; Locations have operated as Opiate Treatment Centers or Behavioral Health Centers for 20 to 50 years
