Mixed-Use Retail
For Sale
Contact for pricing
1517 Lake St W, Minneapolis, MN 55408
Street-level retail space pairs with upper-level residential income potential along West Lake Street.
Property Size2,740 SF
Price / SF$326.64
Days on Market10
Property Features for 1517 Lake St W
General Information
Standard status
Active
Size
2,740 SF
Property subtype
RETAIL
Additional Details
Road Access
Yes
Listing Agency:
RE/MAX Results Commercial
(612) 839-2323
Listed By:
Scott Schultz · License #40244941
(952) 223-0788
Source:
Moodyscre
Added: Aug 27
Changed: Sep 4
Last Checked: Sep 4 at 3:38PM
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 RE/MAX Results Commercial
Investment Insights
Based on property information with market context.
This 2,740-square-foot mixed-use property combines a street-facing retail component with residential space on the upper level. The configuration supports both commercial activity at grade and residential income above within the same building.
The property is located at 1517 Lake St W in Minneapolis, within the Uptown area and along West Lake Street. Its setting places the building within an urban trade area near an established commercial corridor.
The property is located at 1517 Lake St W in Minneapolis, within the Uptown area and along West Lake Street. Its setting places the building within an urban trade area near an established commercial corridor.
Key Highlights
- 2,740‑square‑foot mixed‑use building
- Street‑level retail component
- Upper‑level residential income potential
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
$36,770
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
4.11%
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%
$735,400
$735.4K
Cap Rate 7%
$525,286
$525.3K
Cap Rate 9%
$408,556
$408.6K
Market Conditions
NOI Build-Up for 2,740 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 $26.04/SF
− Vacancy
−$4.5K −$1.64/SF
EGI
$66.9K $24.40/SF
− OpEx
−$30.1K −$10.98/SF
NOI
$36.8K $13.42/SF
Area
Minneapolis, MN
Vacancy
6.30%
Lease Rate
$26.04 /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%
$735,400
Cap Rate 7%
$525,286
Cap Rate 9%
$408,556
Alternative Uses
Best Use
Apartment 5plus
$525.3K
$459.6K – $612.8K
NOI $36,770 @ 7.0% cap · market cap 4.11%
Second Best
Retail
$471.4K
$412.5K – $550.0K
NOI $32,999 @ 7.0% cap · market cap 3.69%
Theoretical Best
Office A
$653.7K
$572.0K – $762.7K
NOI $45,759 @ 7.0% cap · market cap 5.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,219
Businesses Nearby
104k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 52%
Dining 33%
Shops & Services 9%
Hotels & Casinos 3%
Cub Foods
Groceries
30,982 visits/mo
0.4 miles
Lunds & Byerlys
Groceries
23,584 visits/mo
0.1 miles
McDonald's
Dining
16,650 visits/mo
0.2 miles
Chipotle Mexican Grill
Dining
10,300 visits/mo
0.5 miles
Wells Fargo
Shops & Services
5,169 visits/mo
0.1 miles
Demographics for 55408, MN
33,718
Population
17,874
Households
1.9
Avg Household Size
30
Median Age
59%
College-Educated
91%
High-School Grad
2.7 sq mi
ZIP Area
12,488
Density / Sq Mi
$72,421
Median Household Income
$49,753
Median Earnings
$1,385
Median Rent
$387,500
Median Home Value
Market
Vacancy Rate% for Retail in Minneapolis, MN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Street-level retail space pairs with upper-level residential income potential along West Lake Street.
Where is this mixed-use property located?
The property is located at 1517 Lake St W Minneapolis, MN.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: 2,740‑square‑foot mixed‑use building; Street‑level retail component; Upper‑level residential income potential
