Mixed-Use Property With Showroom
For Sale
$2,100,000
1801 Commerce Boulevard, Mound, MN 55364
Business/Commercial-zoned property with meeting areas, parking, garages, and separate living quarters.
Property Size5,092 SF
Days on Market271
Property Features for 1801 Commerce Boulevard
General Information
Standard status
Active
Size
5,092 SF
Property subtype
Commercial
Zoning
Business/Commercial
Taxes and HOA fees
Annual Taxes
$15,045
Building Details
Building Size
5,092 SF
Year Built
1955
Stories
1
Units
2
Listing Agency:
Up Front Homes
(612) 804-3267
Listed By:
Gregory A Haage
(612) 804-3267
Source:
Ivyrealestategroup
Added: Nov 11, 2025
Changed: Aug 8
Last Checked: Aug 9 at 12:38PM
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 Up Front Homes
Investment Insights
Based on property information with market context.
This mixed-use property at 1801 Commerce Boulevard includes 2+ acres and more than 5000+ sq. ft. of existing commercial space. The building features large meeting areas on the main level, three tuck-under garages, and a separate living area with two bedrooms, a kitchen, living room, porch, and private entrance. The property was built in 1955 and is zoned Business/Commercial.
The site includes more than 60 parking spots and sits directly across from Harrison Bay on Lake Minnetonka. Woodlands and wildlife border the property to the west and north, while Harrison Bay Senior Living is next door to the south. Local shops, coffee, gas stations, and restaurants are located a few blocks away, with additional residential development in the surrounding area.
The site includes more than 60 parking spots and sits directly across from Harrison Bay on Lake Minnetonka. Woodlands and wildlife border the property to the west and north, while Harrison Bay Senior Living is next door to the south. Local shops, coffee, gas stations, and restaurants are located a few blocks away, with additional residential development in the surrounding area.
Key Highlights
- 2+ acre site with 5000+ sq. ft. of existing commercial, mixed‑use space
- Business/Commercial zoning
- More than ample 60 parking spots
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
$60,467
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
2.88%
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%
$1,209,340
$1.2M
Cap Rate 7%
$863,814
$863.8K
Cap Rate 9%
$671,856
$671.9K
Market Conditions
NOI Build-Up for 5,092 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
$111.8K $21.96/SF
− Vacancy
−$31.2K −$6.13/SF
EGI
$80.6K $15.83/SF
− OpEx
−$20.2K −$3.96/SF
NOI
$60.5K $11.87/SF
Area
Hennepin County, MN
Vacancy
27.90%
Lease Rate
$21.96 /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%
$1,209,340
Cap Rate 7%
$863,814
Cap Rate 9%
$671,856
Alternative Uses
Best Use
Office B
$863.8K
$755.8K – $1.01M
NOI $60,467 @ 7.0% cap · market cap 2.88%
Second Best
Mixed Use
$805.3K
$704.6K – $939.5K
NOI $56,368 @ 7.0% cap · market cap 2.68%
Theoretical Best
Office A
$1.21M
$1.06M – $1.42M
NOI $85,039 @ 7.0% cap · market cap 4.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
435
Businesses Nearby
Explore this area
Business Placement
Demographics for 55364, MN
15,210
Population
6,740
Households
2.3
Avg Household Size
43
Median Age
50%
College-Educated
98%
High-School Grad
15.2 sq mi
ZIP Area
1,001
Density / Sq Mi
$111,083
Median Household Income
$72,391
Median Earnings
$1,128
Median Rent
$411,200
Median Home Value
Market
Vacancy Rate% for Office 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?
Mixed-use property - Business/Commercial-zoned property with meeting areas, parking, garages, and separate living quarters.
Where is this mixed-use property located?
The property is located at 1801 Commerce Boulevard Mound, MN.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 2+ acre site with 5000+ sq. ft. of existing commercial, mixed‑use space; Business/Commercial zoning; More than ample 60 parking spots
