Updated 6-Unit Apartment
For Sale
$679,000
2818 E 31st St, Minneapolis, MN 55406
Fully occupied apartment property with recent improvements and upgraded mechanical and appliance systems.
Property Size5,050 SF
Price / SF$134.46
Days on Market34
Property Features for 2818 E 31st St
General Information
Standard status
Active
Size
5,050 SF
Occupancy
100%
Additional Details
Gross Income
$88,800
Multifamily Units
6
Building Details
Year Built
1960
Listing Agency:
Keller Williams Classic Rlty NW
(218) 310-5947
Listed By:
Michael Moe
Source:
Brickandbanister
Added: Jul 27
Changed: Aug 28
Last Checked: Aug 28 at 3:08PM
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 Keller Williams Classic Rlty NW
Investment Insights
Based on property information with market context.
This 6-unit apartment building contains 5,050 square feet and was constructed in 1960. Recent updates include a high-efficiency boiler and hot-water combination unit, along with multiple energy-efficient appliances. The property is currently 100% occupied, with a mix of established tenants and newer move-ins.
Located at 2818 E 31st St in Minneapolis, the building is within the Longfellow neighborhood. The existing configuration and completed improvements provide a clear operating profile for an apartment investor evaluating a multifamily asset with established occupancy.
Located at 2818 E 31st St in Minneapolis, the building is within the Longfellow neighborhood. The existing configuration and completed improvements provide a clear operating profile for an apartment investor evaluating a multifamily asset with established occupancy.
Key Highlights
- Six‑unit apartment building with 5,050 square feet
- 100% occupied with both long‑term tenants and recent move‑ins
- Recent property updates completed
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
$60,910
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
8.97%
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%
$1,218,200
$1.2M
Cap Rate 7%
$870,143
$870.1K
Cap Rate 9%
$676,778
$676.8K
Market Conditions
NOI Build-Up for 5,050 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
$117.6K $23.28/SF
− Vacancy
−$6.8K −$1.35/SF
EGI
$110.7K $21.93/SF
− OpEx
−$49.8K −$9.87/SF
NOI
$60.9K $12.06/SF
Area
ZIP 55406
Vacancy
5.80%
Lease Rate
$23.28 /SF/Yr
Expense Ratio
45.00%
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%
$1,218,200
Cap Rate 7%
$870,143
Cap Rate 9%
$676,778
Alternative Uses
Best Use
Apartment 5plus
$870.1K
$761.4K – $1.02M
NOI $60,910 @ 7.0% cap · market cap 8.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.48M
$1.29M – $1.72M
NOI $103,294 @ 7.0% cap · market cap 15.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,281
Businesses Nearby
Explore this area
Business Placement
Demographics for 55406, MN
34,588
Population
17,439
Households
2
Avg Household Size
39
Median Age
56%
College-Educated
93%
High-School Grad
5.0 sq mi
ZIP Area
6,918
Density / Sq Mi
$91,865
Median Household Income
$56,291
Median Earnings
$1,276
Median Rent
$335,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully occupied apartment property with recent improvements and upgraded mechanical and appliance systems.
Where is this apartment building located?
The property is located at 2818 E 31st St Minneapolis, MN.
What is the asking price?
The asking price for this property is $679,000.
What are key features of this property?
This property features: Six‑unit apartment building with 5,050 square feet; 100% occupied with both long‑term tenants and recent move‑ins; Recent property updates completed
