Building Details

Building Size 3,711 SF

Year Built 2004

Buildings 1

Stories 1

Units 1

Tenancy Single

Listing Agency: Edina Realty, Inc. r***@edinarealty.com Show Phone

Listed By: Ray B. Hitchcock Show Phone

Source: Juverealestate

Added: Apr 9, 2025 Changed: Aug 17 Last Checked: Aug 19 at 3:41PM

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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.

Investment Insights

Based on property information with market context.

This stand-alone commercial kitchen property includes the building, catering equipment, and restaurant-related improvements. Built in 2004, the facility offers a large preparation kitchen, walk-in coolers, substantial storage, a restaurant seating area, and a drive-through window. The site also provides ample parking and building signage on Stillwater Blvd. The property is zoned Business/Commercial.

The operation has supported K and J Catering since 1984 and is positioned near Stillwater High School, with access to Hwy 36. The offering includes the established catering business, equipment, and building, providing a complete food-service facility with both production and customer-facing areas.

Key Highlights

• 3,711 SF property built in 2004
• Large catering‑preparation kitchen with walk‑in coolers
• Restaurant seating area and drive‑through window

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

$56,211

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

3.51%

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%

$1,124,220 $1.1M

Cap Rate 7%

$803,014 $803.0K

Cap Rate 9%

$624,567 $624.6K

Market Conditions

NOI Build-Up for 3,711 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

$80.2K $21.60/SF

− Vacancy

−$5.2K −$1.40/SF

EGI

$74.9K $20.20/SF

− OpEx

−$18.7K −$5.05/SF

NOI

$56.2K $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%

$1,124,220

Cap Rate 7%

$803,014

Cap Rate 9%

$624,567

Alternative Uses

Best Use

Specialty Retail

$803.0K

$702.6K – $936.9K (±1% cap)

NOI $56,211 @ 7.0% cap · market cap 3.51%

Second Best

Industrial

$575.9K

$503.9K – $671.9K (±1% cap)

NOI $40,315 @ 7.0% cap · market cap 2.52%

Theoretical Best

Office A

$1.03M

$902.0K – $1.20M (±1% cap)

NOI $72,156 @ 7.0% cap · market cap 4.51%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Commercial kitchens

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

Single-tenant

Tenancy

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 commercial kitchens 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?

Commercial kitchen - Established catering operation with restaurant seating, storage, and customer drive-through access.

Where is this commercial kitchen located?

The property is located at 5920 Neal Avenue 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: 3,711 SF property built in 2004; Large catering‑preparation kitchen with walk‑in coolers; Restaurant seating area and drive‑through window