Coffee Shop with Roasting and
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 Market108
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
Amenities
private landscaped garden and gazebo
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
(218) 235-1084
Added: Apr 21
Changed: Aug 5
Last Checked: Aug 6 at 1:06PM
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 a downtown coffee and wine bar operation with an on-site roasting and production kitchen, plus two upper-level residential units and a separate co-working/event space. At 2 W Sheridan St, the leased building includes bar area, kitchen area, and restrooms, with forced-air heating and propane heat. Built in 1910 and covered by a rubber roof, the property includes basement space as part of the overall improvements.
The roasting, bakery, and kitchen operation is centered at 36 W Sheridan St, including a 5lb Mill City Roaster and full commercial bakery and kitchen for grab-and-go menu items. The upper level above the 36 W Sheridan storefront features two 1-bedroom, 1-bath units, each with off-street parking and access to a private landscaped garden and gazebo, suitable for commercial use or continued employee housing. Also included is Society Hall, a light-filled co-working and event space that is not currently leased.
The combined setup supports daily food and beverage production with food-service hospitality and flexible upper-level space across both addresses.
The roasting, bakery, and kitchen operation is centered at 36 W Sheridan St, including a 5lb Mill City Roaster and full commercial bakery and kitchen for grab-and-go menu items. The upper level above the 36 W Sheridan storefront features two 1-bedroom, 1-bath units, each with off-street parking and access to a private landscaped garden and gazebo, suitable for commercial use or continued employee housing. Also included is Society Hall, a light-filled co-working and event space that is not currently leased.
The combined setup supports daily food and beverage production with food-service hospitality and flexible upper-level space across both addresses.
Key Highlights
- 0.07‑acre lot with 4,350 SF overall building size
- Built in 1910 with a rubber roof
- Two 1‑bedroom, 1‑bath upper residential units with off‑street parking
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
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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 - Historic downtown coffee & wine bar plus a roasting kitchen and two upper residential units with off-street parking.
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: 0.07‑acre lot with 4,350 SF overall building size; Built in 1910 with a rubber roof; Two 1‑bedroom, 1‑bath upper residential units with off‑street parking
