Renovated Multi-Tenant Retail
For Sale
$2,700,000
103 Homestead Road, Mankato, MN 56001
Multi-tenant property anchored by Fraser, with a new seven-year lease and two five-year renewal options.
Property Size18,586 SF
Price / SF$145.27
Days on Market12
Property Features for 103 Homestead Road
General Information
Standard status
Active
Size
18,586 SF
Property subtype
Retail
Additional Details
Anchor Co-Tenants
Fraser
Building Details
Tenancy
Multi
Listed By:
AJ Prins
(612) 336-4322
Source:
Cbre
Added: Sep 16
Changed: Sep 22
Last Checked: Sep 26 at 4:30AM
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 AJ Prins
Investment Insights
Based on property information with market context.
This 18,586-square-foot multi-tenant retail property in Mankato includes a newly renovated facility leased to Fraser and an additional 4,636-square-foot leased area occupied by Rent MSU. More than $500,000 in capital improvements were completed to support Fraser’s occupancy, creating an updated configuration with separate tenant spaces.
Fraser’s lease has an initial seven-year term, scheduled annual rent increases, two five-year renewal options, and reimbursement of most operating expenses, including real estate taxes, insurance, and maintenance. The lease also provides for a 5% administrative fee on base rent and additional expense reimbursements.
The remaining space offers flexibility for repositioning, renovation, or re-tenanting. The property serves Mankato and the broader Southern Minnesota region, with Fraser using the facility as a satellite location for autism and early childhood mental health services.
Fraser’s lease has an initial seven-year term, scheduled annual rent increases, two five-year renewal options, and reimbursement of most operating expenses, including real estate taxes, insurance, and maintenance. The lease also provides for a 5% administrative fee on base rent and additional expense reimbursements.
The remaining space offers flexibility for repositioning, renovation, or re-tenanting. The property serves Mankato and the broader Southern Minnesota region, with Fraser using the facility as a satellite location for autism and early childhood mental health services.
Key Highlights
- 18,586‑square‑foot multi‑tenant retail property
- Newly renovated Fraser facility supported by more than $500,000 in capital improvements
- Fraser lease features an initial 7‑year term and two 5‑year renewal options
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
$226,522
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
8.39%
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%
$4,530,440
$4.5M
Cap Rate 7%
$3,236,029
$3.2M
Cap Rate 9%
$2,516,911
$2.5M
Market Conditions
NOI Build-Up for 18,586 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
$412.6K $22.20/SF
− Vacancy
−$35.1K −$1.89/SF
EGI
$377.5K $20.31/SF
− OpEx
−$151.0K −$8.13/SF
NOI
$226.5K $12.19/SF
Area
Blue Earth County, MN
Vacancy
8.50%
Lease Rate
$22.20 /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%
$4,530,440
Cap Rate 7%
$3,236,029
Cap Rate 9%
$2,516,911
Alternative Uses
Best Use
Healthcare Medical
$3.24M
$2.83M – $3.78M
NOI $226,522 @ 7.0% cap · market cap 8.39%
Second Best
Retail
$2.35M
$2.06M – $2.75M
NOI $164,818 @ 7.0% cap · market cap 6.10%
Theoretical Best
Office A
$3.67M
$3.21M – $4.29M
NOI $257,138 @ 7.0% cap · market cap 9.52%
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
465
Businesses Nearby
94k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 55%
Shops & Services 42%
Hotels & Casinos 3%
Kwik Trip
Shops & Services
39,398 visits/mo
0.3 miles
Noodles & Company
Dining
13,331 visits/mo
0.4 miles
Chipotle Mexican Grill
Dining
10,146 visits/mo
0.4 miles
Caribou Coffee
Dining
7,941 visits/mo
0.4 miles
Cold Stone Creamery
Dining
6,316 visits/mo
0.4 miles
Demographics for 56001, MN
50,729
Population
21,583
Households
2.4
Avg Household Size
30
Median Age
37%
College-Educated
94%
High-School Grad
114.5 sq mi
ZIP Area
443
Density / Sq Mi
$67,224
Median Household Income
$29,122
Median Earnings
$1,088
Median Rent
$263,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Retail space - Multi-tenant property anchored by Fraser, with a new seven-year lease and two five-year renewal options.
Where is this retail space located?
The property is located at 103 Homestead Road Mankato, MN.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 18,586‑square‑foot multi‑tenant retail property; Newly renovated Fraser facility supported by more than $500,000 in capital improvements; Fraser lease features an initial 7‑year term and two 5‑year renewal options
