O'Reilly Auto Parts NNN
For Sale
Contact for pricing
1988 Rahncliff Court, Eagan, MN 55122
Automotive parts retail facility with a NNN lease, renewal options, and access to major Twin Cities transportation corridors.
Property Size5,600 SF
Price / SF$215.18
Days on Market115
Property Features for 1988 Rahncliff Court
General Information
Standard status
Active
Size
5,600 SF
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Core+
Net Operating Income
$78,342
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1987
Buildings
1
Tenancy
Single
Listing Agency:
JLL - Minneapolis, Minnesota
(612) 396-7723
Listed By:
Matt Hazelton · License #MN 40449423
Source:
Crexi
Added: May 8
Changed: Aug 29
Last Checked: Aug 29 at 3:34PM
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 JLL - Minneapolis, Minnesota
Investment Insights
Based on property information with market context.
The property is a 5,600-square-foot automotive parts retail store built in 1987 and occupied continuously by O'Reilly Auto Parts for 27 years. The fee-simple offering is subject to a NNN lease extending through June 2031, with two additional five-year renewal options that could extend the tenancy through 2041. Built-in rent escalations apply during the primary term and renewal periods.
Located at the signalized intersection of Cliff Road and Rahncliff Road, the property connects directly to I-35E and I-494, which together carry over 150,000 vehicles per day. The surrounding retail corridor includes Trader Joe's, Cub Foods, Target, and Cliff Lake Centre. Twin Cities Premium Outlets, with more than 100 stores across 409,000 square feet, is less than two miles away. The property is also positioned near MSP International Airport, Mall of America, and downtown Minneapolis and Saint Paul.
Located at the signalized intersection of Cliff Road and Rahncliff Road, the property connects directly to I-35E and I-494, which together carry over 150,000 vehicles per day. The surrounding retail corridor includes Trader Joe's, Cub Foods, Target, and Cliff Lake Centre. Twin Cities Premium Outlets, with more than 100 stores across 409,000 square feet, is less than two miles away. The property is also positioned near MSP International Airport, Mall of America, and downtown Minneapolis and Saint Paul.
Key Highlights
- 5,600‑square‑foot automotive parts retail store built in 1987
- NNN lease runs through June 2031 with two additional five‑year renewal options
- Lease options could extend the tenancy through 2041
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
$60,837
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
5.05%
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%
$1,216,740
$1.2M
Cap Rate 7%
$869,100
$869.1K
Cap Rate 9%
$675,967
$676.0K
Market Conditions
NOI Build-Up for 5,600 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
$90.7K $16.20/SF
− Vacancy
−$3.8K −$0.68/SF
EGI
$86.9K $15.52/SF
− OpEx
−$26.1K −$4.66/SF
NOI
$60.8K $10.86/SF
Area
Dakota County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$1,216,740
Cap Rate 7%
$869,100
Cap Rate 9%
$675,967
Alternative Uses
Best Use
Industrial
$869.1K
$760.5K – $1.01M
NOI $60,837 @ 7.0% cap · market cap 5.05%
Second Best
Retail
$843.7K
$738.2K – $984.3K
NOI $59,059 @ 7.0% cap · market cap 4.90%
Theoretical Best
Healthcare Medical
$1.38M
$1.21M – $1.61M
NOI $96,466 @ 7.0% cap · market cap 8.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
728
Businesses Nearby
347k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 25%
Groceries 25%
Dining 23%
Shops & Services 12%
Target
Superstores
87,520 visits/mo
0.1 miles
Trader Joe's
Groceries
50,154 visits/mo
0.2 miles
Emagine Eagan
Leisure
40,690 visits/mo
0.2 miles
Cub Foods
Groceries
37,164 visits/mo
0.4 miles
Taco Bell
Dining
18,719 visits/mo
0.1 miles
Demographics for 55122, MN
32,204
Population
13,965
Households
2.3
Avg Household Size
40
Median Age
48%
College-Educated
96%
High-School Grad
10.8 sq mi
ZIP Area
2,982
Density / Sq Mi
$93,980
Median Household Income
$55,845
Median Earnings
$1,594
Median Rent
$342,700
Median Home Value
Market
Vacancy Rate% for Retail 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?
NNN property - Automotive parts retail facility with a NNN lease, renewal options, and access to major Twin Cities transportation corridors.
Where is this nnn property located?
The property is located at 1988 Rahncliff Court Eagan, MN.
What is the asking price?
The asking price for this property is $1,205,000.
What are key features of this property?
This property features: 5,600‑square‑foot automotive parts retail store built in 1987; NNN lease runs through June 2031 with two additional five‑year renewal options; Lease options could extend the tenancy through 2041
