Five-Unit Apartment
For Sale
$475,000
1426 - 1428 E 1st Street, Duluth, MN 55805
Fully rented multifamily property with hardwood floors, recently replaced roofing, and a varied studio and one- to three-bedroom mix.
Property Size4,828 SF
Days on Market359
Property Features for 1426 - 1428 E 1st Street
General Information
Standard status
Active
Size
4,828 SF
Property subtype
Commercial
Zoning
Business/Commercial, Residential-Multi-Family
Occupancy
100%
Units
Unit Mix
3 x studio, 1 x 1BR, 1 x 3BR
Multifamily Units
5
Additional Details
Gross Income
$64,800
Taxes and HOA fees
Annual Taxes
$5,238
Building Details
Building Size
4,828 SF
Year Built
1893
Units
5
Listing Agency:
Edina Realty, Inc. - Duluth
(218) 340-0400
Listed By:
Corrine Hobbs
(218) 340-0400
Source:
Ivyrealestategroup
Added: Aug 20, 2025
Changed: Aug 8
Last Checked: Aug 13 at 1:42PM
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. - Duluth
Investment Insights
Based on property information with market context.
The five-unit apartment complex at 1426 - 1428 E 1st Street includes three studio units, one one-bedroom unit, and one three-bedroom unit. Apartments range from 444 square feet to 1090 square feet and feature spacious layouts and hardwood floors. The roof has been recently replaced, and the property was built in 1893. All units are currently rented, with the owner paying utilities.
The property is located in Duluth’s East End near the Lake Superior boardwalk, the University of Minnesota Duluth, and the College of St. Scholastica. The surrounding area includes parks, restaurants, shops, and cafes, with nearby access to Leif Erikson Park, the Duluth Rose Garden, the Lakewalk, downtown, and Chester Creek hiking trails.
The property is located in Duluth’s East End near the Lake Superior boardwalk, the University of Minnesota Duluth, and the College of St. Scholastica. The surrounding area includes parks, restaurants, shops, and cafes, with nearby access to Leif Erikson Park, the Duluth Rose Garden, the Lakewalk, downtown, and Chester Creek hiking trails.
Key Highlights
- Five‑unit apartment complex with three studios, one one‑bedroom, and one three‑bedroom unit
- 444 square feet to 1090 square feet per apartment
- All units are rented; owner pays utilities
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
Location Intelligence
Trade Area within ½ mile
4,514
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Fully rented multifamily property with hardwood floors, recently replaced roofing, and a varied studio and one- to three-bedroom mix.
Where is this apartment building located?
The property is located at 1426 - 1428 E 1st Street 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: Five‑unit apartment complex with three studios, one one‑bedroom, and one three‑bedroom unit; 444 square feet to 1090 square feet per apartment; All units are rented; owner pays utilities
