Building Details

Building Size 1,352 SF

Year Built 1950

Buildings 1

Stories 1

Units 1

Listing Agency: Weichert Realtors, Community Group r***@weichertcommunitygroup.com Show Phone

Listed By: Richard E Draheim Show Phone

Source: Juverealestate

Added: Sep 17, 2025 Changed: Aug 11 Last Checked: Aug 11 at 9:20AM

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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 Weichert Realtors, Community Group

Investment Insights

Based on property information with market context.

This single-story bar and pub at 204 1st Avenue includes the building, land, existing inventory, and appliances. The interior has been updated and provides two separate bar areas, varied seating with tables, stools, and high-top arrangements, plus a ceramic-tile bathroom. A fenced patio extends the available customer area outdoors, while the property also includes a generous parking area. Building additions were completed in 2016 and 2018, and the structure is covered by a metal roof. The property is positioned along State Highway 83 in Pemberton, Minnesota, and carries Business/Commercial zoning.

Key Highlights

• Single‑story bar and pub with building, land, inventory, and appliances included
• Two distinct bar areas with tables, stools, and high‑top seating
• Fenced patio provides outdoor dining space

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

$17,777

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

7.14%

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%

$355,540 $355.5K

Cap Rate 7%

$253,957 $254.0K

Cap Rate 9%

$197,522 $197.5K

Market Conditions

NOI Build-Up for 1,352 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

$24.3K $18.00/SF

− Vacancy

−$633 −$0.47/SF

EGI

$23.7K $17.53/SF

− OpEx

−$5.9K −$4.38/SF

NOI

$17.8K $13.15/SF

Area

Blue Earth County, MN

Vacancy

2.60%

Lease Rate

$18.00 /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%

$355,540

Cap Rate 7%

$253,957

Cap Rate 9%

$197,522

Alternative Uses

Best Use

Specialty Retail

$254.0K

$222.2K – $296.3K (±1% cap)

NOI $17,777 @ 7.0% cap · market cap 7.14%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$267.2K

$233.8K – $311.8K (±1% cap)

NOI $18,705 @ 7.0% cap · market cap 7.51%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Bars & Pubs

Suggested Use

Top Pick Storage Facility Skin Care Clinic Acupuncture Gym & Fitness Center Accounting Firm Spa & Massage Center

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

26

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56078, MN

454

Population

195

Households

2.3

Avg Household Size

42

Median Age

19%

College-Educated

97%

High-School Grad

25.4 sq mi

ZIP Area

18

Density / Sq Mi

$79,688

Median Household Income

$40,682

Median Earnings

$1,575

Median Rent

$187,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this bars & pubs located? What is the asking price? Find similar properties ... What are key features of this property?

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Similar Off Market Nearby

• Backyard Bar & Grill — Railroad St, Pemberton, MN 56078
• Jamie's Pemberton Pub — 215 Main St, Pemberton, MN 56078

Frequently Asked Questions

What type of property is this?

Bar & Pub - Updated hospitality property with a fenced patio, parking area, two bar spaces, and appliances included.

Where is this bar & pub located?

The property is located at 204 1st Avenue Pemberton, MN.

What is the asking price?

The asking price for this property is $249,000.

What are key features of this property?

This property features: Single‑story bar and pub with building, land, inventory, and appliances included; Two distinct bar areas with tables, stools, and high‑top seating; Fenced patio provides outdoor dining space