Medical Office Building with Lower-Level
For Sale
$2,999,000
1511 Northway Drive, Saint Cloud, MN 56303
Professional office building with existing medical-use space and additional lower-level suites.
Property Size18,500 SF
Price / SF$162.11
Days on Market212
Property Features for 1511 Northway Drive
General Information
Standard status
Active
Size
18,500 SF
Property subtype
Commercial
Zoning
Business/Commercial
Taxes and HOA fees
Annual Taxes
$56,674
Building Details
Building Size
18,500 SF
Year Built
1996
Buildings
1
Stories
1
Units
1
Tenancy
Multi
Listing Agency:
Agency North Real Estate, Inc
(320) 293-6379
Listed By:
Wendy Hendricks · License #40438191
(320) 293-6379
Source:
Juverealestate
Added: Jan 12
Changed: Aug 12
Last Checked: Aug 12 at 3:09AM
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 Agency North Real Estate, Inc
Investment Insights
Based on property information with market context.
This 18,500-square-foot office building was constructed in 1996 and is zoned Business/Commercial. The property includes professional medical office space, along with two lower-level suites: an 1,890-square-foot unfinished area suitable for storage or future office buildout and a 2,610-square-foot finished suite configured for medical use. Existing occupancy includes long-term tenants.
Located on Northway Drive in Saint Cloud, the building is near CentraCare/St. Cloud Hospital, Whitney Park, the YMCA, Whitney Senior Center, and other medical offices and clinics. An adjacent lot at 2030 Stearns Way is also available for potential expansion.
Located on Northway Drive in Saint Cloud, the building is near CentraCare/St. Cloud Hospital, Whitney Park, the YMCA, Whitney Senior Center, and other medical offices and clinics. An adjacent lot at 2030 Stearns Way is also available for potential expansion.
Key Highlights
- 18,500‑square‑foot office building constructed in 1996
- Business/Commercial zoning
- 2,610‑square‑foot finished lower‑level suite configured for medical use
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
$268,811
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
8.96%
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%
$5,376,220
$5.4M
Cap Rate 7%
$3,840,157
$3.8M
Cap Rate 9%
$2,986,789
$3.0M
Market Conditions
NOI Build-Up for 18,500 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
$481.7K $26.04/SF
− Vacancy
−$33.7K −$1.82/SF
EGI
$448.0K $24.22/SF
− OpEx
−$179.2K −$9.69/SF
NOI
$268.8K $14.53/SF
Area
Sherburne County, MN
Vacancy
7.00%
Lease Rate
$26.04 /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%
$5,376,220
Cap Rate 7%
$3,840,157
Cap Rate 9%
$2,986,789
Alternative Uses
Best Use
Healthcare Medical
$3.84M
$3.36M – $4.48M
NOI $268,811 @ 7.0% cap · market cap 8.96%
Second Best
Office B
$3.14M
$2.75M – $3.66M
NOI $219,685 @ 7.0% cap · market cap 7.33%
Theoretical Best
Office A
$4.41M
$3.86M – $5.15M
NOI $308,960 @ 7.0% cap · market cap 10.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,369
Businesses Nearby
Explore this area
Business Placement
Demographics for 56303, MN
27,305
Population
11,760
Households
2.3
Avg Household Size
39
Median Age
29%
College-Educated
93%
High-School Grad
11.0 sq mi
ZIP Area
2,482
Density / Sq Mi
$66,789
Median Household Income
$39,167
Median Earnings
$1,001
Median Rent
$197,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Professional office building with existing medical-use space and additional lower-level suites.
Where is this office building located?
The property is located at 1511 Northway Drive Saint Cloud, MN.
What is the asking price?
The asking price for this property is $2,999,000.
What are key features of this property?
This property features: 18,500‑square‑foot office building constructed in 1996; Business/Commercial zoning; 2,610‑square‑foot finished lower‑level suite configured for medical use
