Walgreens Investment Opportunity in St.
For Sale
$3,490,909
1665 White Bear Avenue, Saint Paul, MN 55106
Opportunity to purchase a well established Walgreens location in St Paul, MN
Property Size15,085 SF
Price / SF$231.42
Days on Market571
Property Features for 1665 White Bear Avenue
General Information
Standard status
Active
Property type
Other retail properties, Individual retail properties, Other investment properties, Retail properties & Spaces, Investment properties
Size
15,085 SF
Elevators
N/A
Building Details
Buildings
1
Stories
1
Units
1
Listing Agency:
(925) 348-1844
Listed By:
Kase
(925) 348-1844
Added: Jan 27, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This investment opportunity features a well-established Walgreens location in Saint Paul, Minnesota. The property includes a 15,085 square foot building situated at a signalized intersection of Larpenteur Ave E and White Bear Ave, benefiting from high visibility and exposure to 20,183 vehicles per day. The property is subject to a corporate-guaranteed Walgreens lease, expiring January 2029, with ten 5-year renewal options. This is an absolute NNN lease, minimizing landlord responsibilities. The location boasts strong neighboring retailers, including Pizza Hut, O'Reilly Auto Parts, Little Caesars Pizza, White Castle, Dollar Tree, and Metro by T-Mobile, contributing to a vibrant commercial environment. Saint Paul, the capital of Minnesota, is a regional business hub and part of the Twin Cities metropolitan area, offering a strong demographic base. This investment presents a compelling opportunity for long-term income generation and appreciation in a prime location. The property is classified as an Investment NNN property.
Key Highlights
- Absolute NNN Lease
- Corporate Guarantee - NASDAQ:WBA
- Seller will Provide 50% LTV Financing
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
$159,089
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
4.56%
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%
$3,181,780
$3.2M
Cap Rate 7%
$2,272,700
$2.3M
Cap Rate 9%
$1,767,656
$1.8M
Market Conditions
NOI Build-Up for 15,085 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
$271.5K $18.00/SF
− Vacancy
−$44.3K −$2.93/SF
EGI
$227.3K $15.07/SF
− OpEx
−$68.2K −$4.52/SF
NOI
$159.1K $10.55/SF
Area
Dakota County, MN
Vacancy
16.30%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$3,181,780
Cap Rate 7%
$2,272,700
Cap Rate 9%
$1,767,656
Alternative Uses
Best Use
Retail
$2.27M
$1.99M – $2.65M
NOI $159,089 @ 7.0% cap · market cap 4.56%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$3.71M
$3.25M – $4.33M
NOI $259,854 @ 7.0% cap · market cap 7.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
338
Businesses Nearby
720
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 100%
Dairy Queen
Dining
720 visits/mo
0.4 miles
Demographics for 55106, MN
60,327
Population
19,974
Households
3
Avg Household Size
30
Median Age
23%
College-Educated
82%
High-School Grad
9.4 sq mi
ZIP Area
6,418
Density / Sq Mi
$68,601
Median Household Income
$39,834
Median Earnings
$1,230
Median Rent
$233,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Other retail property - Opportunity to purchase a well established Walgreens location in St Paul, MN
Where is this other retail property located?
The property is located at 1665 White Bear Avenue Saint Paul, MN.
What is the asking price?
The asking price for this property is $3,490,909.
What are key features of this property?
This property features: Absolute NNN Lease; Corporate Guarantee - NASDAQ:WBA; Seller will Provide 50% LTV Financing
