Turnkey Coffee & Wine Bar
For Sale
$979,000
2 W Sheridan St, Ely, MN 55731
Turnkey operation with a roasting room, commercial kitchen, and two 1-bedroom units above the storefront.
Property Size4,350 SF
Price / SF$225.06
Days on Market114
Property Features for 2 W Sheridan St
General Information
Standard status
Active
Size
4,350 SF
Additional Details
Business Included
Yes
Multifamily Units
2
Listing Agency:
Canoe Capital Realty, LLC
(218) 235-1084
Listed By:
Kerry Davis
(218) 235-1084
Source:
Exprealty
Added: Apr 20
Changed: Jul 10
Last Checked: Aug 10 at 8:10AM
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 Canoe Capital Realty, LLC
Investment Insights
Based on property information with market context.
This turnkey sale combines a leased commercial operation with a separate production hub. The Premier Coffee & Wine Bar operates in the leased building, while the roasting and culinary functions are housed at 36 W. Sheridan St. The Roasting Room includes a 5lb Mill City Roaster and a full commercial bakery and kitchen designed for grab-and-go menu items. The offering also includes Society Hall, a light-filled co-working and event space that is not currently leased.
The assemblage is located in Ely, Minnesota, including the business at 2 W. Sheridan St. and the production hub at 36 W. Sheridan St. The upper level above the 36 W. Sheridan storefront features two well-appointed residential units, each with one bedroom, one bathroom, off-street parking, and access to a private landscaped garden and gazebo.
This is a strong fit for an owner-operator or hospitality-focused group seeking to run coffee and wine service alongside roasting and in-house bakery production. The layout also supports a blended use strategy with an on-site co-working/event space and optional live/work flexibility through the two residential units that can serve commercial use or continued employee housing.
The assemblage is located in Ely, Minnesota, including the business at 2 W. Sheridan St. and the production hub at 36 W. Sheridan St. The upper level above the 36 W. Sheridan storefront features two well-appointed residential units, each with one bedroom, one bathroom, off-street parking, and access to a private landscaped garden and gazebo.
This is a strong fit for an owner-operator or hospitality-focused group seeking to run coffee and wine service alongside roasting and in-house bakery production. The layout also supports a blended use strategy with an on-site co-working/event space and optional live/work flexibility through the two residential units that can serve commercial use or continued employee housing.
Key Highlights
- Turnkey business operating at 2 W. Sheridan St. in a leased building plus supporting hub at 36 W. Sheridan St.
- Premier coffee & wine bar at 2 W. Sheridan St., described as a downtown anchor with small‑batch coffee and a wine collection.
- Roasting Room at 36 W. Sheridan St. includes a 5 lb Mill City Roaster and full commercial bakery and kitchen for grab & go menu items.
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
$60,341
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
6.16%
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%
$1,206,820
$1.2M
Cap Rate 7%
$862,014
$862.0K
Cap Rate 9%
$670,456
$670.5K
Market Conditions
NOI Build-Up for 4,350 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
$108.6K $24.96/SF
− Vacancy
−$28.1K −$6.46/SF
EGI
$80.5K $18.50/SF
− OpEx
−$20.1K −$4.62/SF
NOI
$60.3K $13.87/SF
Area
St. Louis County, MN
Vacancy
25.90%
Lease Rate
$24.96 /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%
$1,206,820
Cap Rate 7%
$862,014
Cap Rate 9%
$670,456
Alternative Uses
Best Use
Specialty Retail
$1.69M
$1.48M – $1.97M
NOI $118,120 @ 7.0% cap · market cap 12.07%
Second Best
Office B
$862.0K
$754.3K – $1.01M
NOI $60,341 @ 7.0% cap · market cap 6.16%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
503
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55731, MN
5,494
Population
4,954
Households
1.1
Avg Household Size
54
Median Age
41%
College-Educated
94%
High-School Grad
1,606.7 sq mi
ZIP Area
3
Density / Sq Mi
$62,900
Median Household Income
$31,840
Median Earnings
$641
Median Rent
$202,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Barkhouse Bistro — 141 E Chapman St, Ely, MN 55731
- Brainstorm Bakery/Crapola World Headquarters — 402 E Sheridan St, Ely, MN 55731
Frequently Asked Questions
What type of property is this?
Coffee shop - Turnkey operation with a roasting room, commercial kitchen, and two 1-bedroom units above the storefront.
Where is this coffee shop located?
The property is located at 2 W Sheridan St Ely, MN.
What is the asking price?
The asking price for this property is $979,000.
What are key features of this property?
This property features: Turnkey business operating at 2 W. Sheridan St. in a leased building plus supporting hub at 36 W. Sheridan St.; Premier coffee & wine bar at 2 W. Sheridan St., described as a downtown anchor with small‑batch coffee and a wine collection.; Roasting Room at 36 W. Sheridan St. includes a 5 lb Mill City Roaster and full commercial bakery and kitchen for grab & go menu items.
