Building Details

Year Built 1987

Listing Agency: Tracy Sells LLC t***@tracysells.com Show Phone

Listed By: Tracy Petersohn

Source: Bradadamrealty

Added: Aug 23 Changed: Aug 28 Last Checked: Aug 28 at 8:36PM

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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 Tracy Sells LLC

Investment Insights

Based on property information with market context.

This Dodge Center retail property includes a 7,424-square-foot storefront building and a separate cold-storage structure measuring 30x52. The improvements support a retail operation with dedicated refrigerated storage capacity.

Built in 1987, the property is located at 14 3rd Ave SW in Dodge Center, Minnesota. The existing store format and supplemental cold-storage building provide a combined commercial setup for retail use requiring additional temperature-controlled space.

Key Highlights

• 7,424‑square‑foot storefront building
• Separate 30x52 cold‑storage building
• Existing retail store configuration

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

$58,762

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

7.35%

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%

$1,175,240 $1.2M

Cap Rate 7%

$839,457 $839.5K

Cap Rate 9%

$652,911 $652.9K

Market Conditions

NOI Build-Up for 7,424 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

$71.3K $9.60/SF

− Vacancy

−$2.1K −$0.29/SF

EGI

$69.1K $9.31/SF

− OpEx

−$10.4K −$1.40/SF

NOI

$58.8K $7.92/SF

Area

Dodge County, MN

Vacancy

3.00%

Lease Rate

$9.60 /SF/Yr

Expense Ratio

15.00%

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%

$1,175,240

Cap Rate 7%

$839,457

Cap Rate 9%

$652,911

Alternative Uses

Best Use

Retail

$1.19M

$1.04M – $1.39M (±1% cap)

NOI $83,563 @ 7.0% cap · market cap 10.45%

Second Best

Warehouse

$839.5K

$734.5K – $979.4K (±1% cap)

NOI $58,762 @ 7.0% cap · market cap 7.35%

Theoretical Best

Office A

$2.86M

$2.50M – $3.34M (±1% cap)

NOI $200,156 @ 7.0% cap · market cap 25.02%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Hardware Hank Building Supply

Suggested Use

Top Pick Law Firm Parking Lot & Garage HVAC Service Hair Salon Electrical Service Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

201

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 55927, MN

4,154

Population

1,760

Households

2.4

Avg Household Size

38

Median Age

18%

College-Educated

94%

High-School Grad

80.1 sq mi

ZIP Area

52

Density / Sq Mi

$91,536

Median Household Income

$52,378

Median Earnings

$926

Median Rent

$216,100

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this storefront properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Similar Off Market Nearby

• Huckleberry Floral Design & Gift — 25 W Main St, Dodge Center, MN 55927

Frequently Asked Questions

What type of property is this?

Storefront property - Established retail storefront with a dedicated cold-storage building.

Where is this storefront property located?

The property is located at 14 3rd Ave SW Dodge Center, MN.

What is the asking price?

The asking price for this property is $800,000.

What are key features of this property?

This property features: 7,424‑square‑foot storefront building; Separate 30x52 cold‑storage building; Existing retail store configuration