Coffee Shop and Roasting
For Sale
$979,000
2 W Sheridan St, Ely, MN 55731
COMMERCIAL, Ely, MN
Property Size4,350 SF
Lot Size0.07 Acres
Price / SF$225.06
Days on Market156
Property Features for 2 W Sheridan St
General Information
Property type
Commercial Sale
Property subtype
Other
Rooms
Basement
Interior features
Bar Area, Kitchen Area, Restrooms
Basement
Concrete
Directions
Sheridan St Ely MN to addresses.
Subdivision
LSAR
Standard status
Active
Size
4,350 SF
Lot size
0.07 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
3702
Utilities
Heating system
Propane (Heating), Forced Air
Building Details
Year built
1910
Number of units
2
Roof type
Rubber
Listing Agency:
Canoe Capital Realty, LLC
(218) 235-1084
Listed By:
Kerry Davis · License #40208514
(218) 365-8689
Added: Apr 21
Changed: Sep 14
Last Checked: Sep 23 at 7:06PM
MLS# 6124637
Copyright © 2026 Lake Superior Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This offering combines an established coffee and wine business at 2 W. Sheridan St. with the production and real estate component at 36 W. Sheridan St. The operation includes a roasting room equipped with a 5lb Mill City Roaster, along with a commercial bakery and kitchen. The primary business location is in a leased building, while the 36 W. Sheridan property includes the production hub and two upper-level residential units.
Each residential unit has one bedroom and one bathroom, with off-street parking and access to a landscaped garden and gazebo. Society Hall provides coworking and event space and is currently available for leasing. The property includes 4,350 square feet on 0.07 acres, was built in 1910, and features a bar area, kitchen area, restrooms, rubber roofing, and a basement. Both locations are in Ely, Minnesota, with the real estate component identified as Parcel 030-0260-00010.
Each residential unit has one bedroom and one bathroom, with off-street parking and access to a landscaped garden and gazebo. Society Hall provides coworking and event space and is currently available for leasing. The property includes 4,350 square feet on 0.07 acres, was built in 1910, and features a bar area, kitchen area, restrooms, rubber roofing, and a basement. Both locations are in Ely, Minnesota, with the real estate component identified as Parcel 030-0260-00010.
Key Highlights
- Business operation spans 2 W. Sheridan St. and 36 W. Sheridan St. in Ely
- Roasting room includes a 5lb Mill City Roaster
- Commercial bakery and kitchen at the 36 W. Sheridan production hub
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
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Current Use
Lease Details
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Midwest region
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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 - Established coffee and wine business with roasting, bakery, kitchen, coworking, and event components across two Sheridan Street locations.
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: Business operation spans 2 W. Sheridan St. and 36 W. Sheridan St. in Ely; Roasting room includes a 5lb Mill City Roaster; Commercial bakery and kitchen at the 36 W. Sheridan production hub
