Flex Garage Condo with In-Floor
For Sale
$295,500
D5-721 Industrial Blvd, Watertown, MN
Commercial garage condominium with an insulated overhead door, in-floor heat, and rough-in plumbing for a bathroom.
Property Size1,500 SF
Price / SF$197
Days on Market613
Property Features for D5-721 Industrial Blvd
General Information
Standard status
Active
Size
1,500 SF
Zoning
commercial/multi use
Warehouse & Industrial
Drive-In Doors
1
Power
100 amps
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$504
Amenities
lawn care
snow removal
refuse
security
Listing Agency:
Edina Realty, Inc.
(952) 334-4857
Listed By:
Butcher Real Estate Team
(952) 212-2374
Source:
Exprealty
Added: Dec 27, 2024
Changed: Aug 31
Last Checked: Aug 31 at 7:56PM
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 flex-space garage condominium provides 1,500 square feet within a 30-by-50-foot unit. Improvements include sheetrocked interior walls, a tin ceiling, a 16-foot-wide by 14-foot-high insulated garage door with opener, two LED lights, in-floor heat, 100-amp electrical service, a floor trench drain, and a fire suppression system. Plumbing is roughed in for a bathroom with shower, and the structure is prepared for a future mezzanine. The unit also includes LP siding, an asphalt shingle roof, concrete aprons, and an asphalt parking lot.
Located at D5-721 Industrial Blvd in Watertown, Minnesota, the property is zoned commercial/multi-use, and businesses are welcome. Association services cover lawn care, snow removal, refuse, and security. Planned common-area improvements include entrance gates, security fencing, a wash bay, dump station, and lounge.
Located at D5-721 Industrial Blvd in Watertown, Minnesota, the property is zoned commercial/multi-use, and businesses are welcome. Association services cover lawn care, snow removal, refuse, and security. Planned common-area improvements include entrance gates, security fencing, a wash bay, dump station, and lounge.
Key Highlights
- 1,500 SF flex‑space garage condominium
- 30'x50' unit with 16' W x 14' H insulated garage door and opener
- In‑floor heat with 100‑amp electrical service
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
$20,340
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
6.88%
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%
$406,800
$406.8K
Cap Rate 7%
$290,571
$290.6K
Cap Rate 9%
$226,000
$226.0K
Market Conditions
NOI Build-Up for 1,500 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
$32.9K $21.96/SF
− Vacancy
−$1.6K −$1.10/SF
EGI
$31.3K $20.86/SF
− OpEx
−$11.0K −$7.30/SF
NOI
$20.3K $13.56/SF
Area
Carver County, MN
Vacancy
5.00%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
35.00%
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%
$406,800
Cap Rate 7%
$290,571
Cap Rate 9%
$226,000
Alternative Uses
Best Use
Flex RnD
$290.6K
$254.3K – $339.0K
NOI $20,340 @ 7.0% cap · market cap 6.88%
Second Best
Industrial
$232.8K
$203.7K – $271.6K
NOI $16,296 @ 7.0% cap · market cap 5.51%
Theoretical Best
Office A
$357.9K
$313.1K – $417.5K
NOI $25,051 @ 7.0% cap · market cap 8.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
300
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Commercial garage condominium with an insulated overhead door, in-floor heat, and rough-in plumbing for a bathroom.
Where is this flex space located?
The property is located at D5-721 Industrial Blvd Watertown, MN.
What is the asking price?
The asking price for this property is $295,500.
What are key features of this property?
This property features: 1,500 SF flex‑space garage condominium; 30'x50' unit with 16' W x 14' H insulated garage door and opener; In‑floor heat with 100‑amp electrical service
