Prime Apple Valley Commercial
For Sale
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15290 Pennock Ln, Apple Valley, MN
Excellent location for office, retail, medical, or educational purposes.
Property Size30,888 SF
Lot Size5.01 Acres
Price / SF$152.16
Days on Market409
Property Features for 15290 Pennock Ln
General Information
Standard status
Active
Size
30,888 SF
Lot size
5.01 Acres
Property subtype
OFFICE
Listing Agency:
Transwestern
(612) 359-1674
Listed By:
Francis Richie
(612) 359-1674
Source:
Moodyscre
Added: Jul 8, 2025
Changed: Jul 6
Last Checked: Aug 19 at 8:48AM
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 Transwestern
Investment Insights
Based on property information with market context.
Located in Apple Valley, a growing suburban community in the Twin Cities, the property at 15290 Pennock Lane offers a commercial opportunity. The site benefits from visibility and traffic, with access to amenities. The location is near Cedar Avenue and County Road 42, and in proximity to healthcare providers, retail centers, restaurants, and residential neighborhoods. The property is suitable for office, retail, medical, educational, or mixed-use purposes. The area's demographics, household incomes, and population growth may provide stability for investors or owner-users. The property offers potential for future uses in the southeast metro.
Key Highlights
- Excellent visibility and strong traffic counts due to strategic location near Cedar Avenue and County Road 42.
- Immediate access to a wide range of amenities including healthcare providers, retail centers, and restaurants.
- Located in Apple Valley, a lively and growing suburban community in the Twin Cities.
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
$383,145
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
8.15%
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%
$7,662,900
$7.7M
Cap Rate 7%
$5,473,500
$5.5M
Cap Rate 9%
$4,257,167
$4.3M
Market Conditions
NOI Build-Up for 30,888 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
$689.4K $22.32/SF
− Vacancy
−$178.6K −$5.78/SF
EGI
$510.9K $16.54/SF
− OpEx
−$127.7K −$4.13/SF
NOI
$383.1K $12.40/SF
Area
Dakota County, MN
Vacancy
25.90%
Lease Rate
$22.32 /SF/Yr
Expense Ratio
25.00%
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%
$7,662,900
Cap Rate 7%
$5,473,500
Cap Rate 9%
$4,257,167
Alternative Uses
Best Use
Healthcare Medical
$7.60M
$6.65M – $8.87M
NOI $532,077 @ 7.0% cap · market cap 11.32%
Second Best
Office B
$5.47M
$4.79M – $6.39M
NOI $383,145 @ 7.0% cap · market cap 8.15%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,468
Businesses Nearby
Explore this area
Business Placement
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 - Excellent location for office, retail, medical, or educational purposes.
Where is this office building located?
The property is located at 15290 Pennock Ln Apple Valley, MN.
What is the asking price?
The asking price for this property is $4,700,000.
What are key features of this property?
This property features: Excellent visibility and strong traffic counts due to strategic location near Cedar Avenue and County Road 42.; Immediate access to a wide range of amenities including healthcare providers, retail centers, and restaurants.; Located in Apple Valley, a lively and growing suburban community in the Twin Cities.
