Single-Story Restaurant
For Sale
$249,000
204 1st Ave, Pemberton, MN 56078
Restaurant and bar property with expanded interior space, two bar areas, fenced patio seating, parking, and included equipment.
Property Size1,352 SF
Price / SF$184.17
Days on Market32
Property Features for 204 1st Ave
General Information
Standard status
Active
Size
1,352 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Restaurant
Patio
Yes
Equipment Included
Yes
Additional Details
Business Included
Yes
Building Details
Year Built
1950
Buildings
1
Stories
1
Listing Agency:
Weichert Realtors, Community Group
(507) 381-0808
Listed By:
Richard E Draheim
Source:
Vibemn
Added: Jul 31
Changed: Aug 29
Last Checked: Aug 30 at 6:53PM
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 restaurant and bar property includes the building, land, existing inventory, and appliances. The 1,352-square-foot facility was expanded through additions completed in 2016 and 2018, adding operational and customer space to the original structure. Interior features include two separate bar areas, varied seating with tables, stools, and high-top arrangements, and a bathroom finished with ceramic tile. A metal roof and fenced patio are also part of the improvements.
The property is located at 204 1st Ave in Pemberton, Minnesota, along State Highway 83. On-site parking supports customer access, while the patio provides an outdoor dining area. Existing appliances and inventory are included with the sale, along with the land and building.
The property is located at 204 1st Ave in Pemberton, Minnesota, along State Highway 83. On-site parking supports customer access, while the patio provides an outdoor dining area. Existing appliances and inventory are included with the sale, along with the land and building.
Key Highlights
- 1,352‑square‑foot restaurant and bar building
- Additions completed in 2016 and 2018
- Two distinct bar areas with varied seating
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
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
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
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
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant and bar property with expanded interior space, two bar areas, fenced patio seating, parking, and included equipment.
Where is this conventional restaurant located?
The property is located at 204 1st Ave 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: 1,352‑square‑foot restaurant and bar building; Additions completed in 2016 and 2018; Two distinct bar areas with varied seating
