5-Unit Apartment
For Sale
$475,000
1426 1st St, Duluth, MN 55805
Five fully rented units with recently replaced roof; mix includes studios plus one- and three-bedroom apartments.
Property Size4,828 SF
Price / SF$98.38
Days on Market370
Property Features for 1426 1st St
General Information
Standard status
Active
Size
4,828 SF
Property subtype
General Commercial
Occupancy
100%
Additional Details
Multifamily Units
5
Taxes and HOA fees
Annual Taxes
$5,238
Amenities
3
Parking.
On Street.
Building Details
Year Built
1893
Tenancy
Multi
Listing Agency:
Edina Realty, Inc.
(218) 340-0400
Listed By:
Duluth
(218) 340-0400
Source:
Xome
Added: Aug 18, 2025
Changed: Aug 22
Last Checked: Aug 22 at 4:54AM
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 5-unit apartment building offers a simple, income-producing mix of three studio units, one one-bedroom unit, and one three-bedroom unit. The apartments feature hardwood floors and range in size from 444 to 1,090 square feet. All units are currently rented, and the roof has been recently replaced. Total monthly rents are $5,400, and the owner pays utilities.
The property is located near the Lake Superior boardwalk and in Duluth’s East End, close to the University of Minnesota Duluth and the College of St. Scholastica. The remarks also note proximity to Leif Erikson Park/Duluth Rose Garden, Lakewalk and Downtown, as well as very near Chester Creek and its hiking opportunities.
For buyers seeking a small multifamily asset with an in-place tenancy and a recently updated roof, this property provides a clear unit breakdown and current rental figures.
The property is located near the Lake Superior boardwalk and in Duluth’s East End, close to the University of Minnesota Duluth and the College of St. Scholastica. The remarks also note proximity to Leif Erikson Park/Duluth Rose Garden, Lakewalk and Downtown, as well as very near Chester Creek and its hiking opportunities.
For buyers seeking a small multifamily asset with an in-place tenancy and a recently updated roof, this property provides a clear unit breakdown and current rental figures.
Key Highlights
- 5‑unit apartment complex near the Lake Superior boardwalk with all units rented
- Recently replaced roof
- Unit mix: three studio units, one 1‑bedroom, and one 3‑bedroom apartment
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
$39,538
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
8.32%
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%
$790,760
$790.8K
Cap Rate 7%
$564,829
$564.8K
Cap Rate 9%
$439,311
$439.3K
Market Conditions
NOI Build-Up for 4,828 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
$76.5K $15.84/SF
− Vacancy
−$4.6K −$0.95/SF
EGI
$71.9K $14.89/SF
− OpEx
−$32.3K −$6.70/SF
NOI
$39.5K $8.19/SF
Area
St. Louis County, MN
Vacancy
6.00%
Lease Rate
$15.84 /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%
$790,760
Cap Rate 7%
$564,829
Cap Rate 9%
$439,311
Alternative Uses
Best Use
Apartment 5plus
$564.8K
$494.2K – $659.0K
NOI $39,538 @ 7.0% cap · market cap 8.32%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.87M
$1.64M – $2.19M
NOI $131,100 @ 7.0% cap · market cap 27.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,658
Businesses Nearby
Explore this area
Business Placement
Demographics for 55805, MN
9,731
Population
5,430
Households
1.8
Avg Household Size
31
Median Age
37%
College-Educated
93%
High-School Grad
1.4 sq mi
ZIP Area
6,951
Density / Sq Mi
$43,077
Median Household Income
$26,309
Median Earnings
$984
Median Rent
$171,100
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 - Five fully rented units with recently replaced roof; mix includes studios plus one- and three-bedroom apartments.
Where is this apartment building located?
The property is located at 1426 1st St Duluth, MN.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 5‑unit apartment complex near the Lake Superior boardwalk with all units rented; Recently replaced roof; Unit mix: three studio units, one 1‑bedroom, and one 3‑bedroom apartment
