Building Details

Buildings 1

Building Size 6,644 SF

Tenancy Single

Listing Agency: Brait Capital Show Phone

Listed By: Mark Ruchko · License #40651219 Show Phone

Source: Moodyscre

Added: Jul 28 Changed: Sep 10 Last Checked: Sep 13 at 8:10AM

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Investment Insights

Based on property information with market context.

Located at 20454 Hwy 65 NE in East Bethel, MN, this single-tenant flex space is positioned for strong visibility along Highway 65 NE. The property includes a 6,644 SF building on a 2.41-acre site, with approximately 206 feet of frontage and direct access from Highway 65 NE.

The space is described as having flexible commercial layouts, supported by ample on-site parking. The site is positioned for tenant uses such as retail, showroom, office, automotive, or service, and it’s also presented as a conversion opportunity for retail, industrial, or redevelopment applications.

Zoned B-2 General Commercial, the property is situated within a well-traveled commercial corridor and an expanding East Bethel trade area. The combination of highway frontage, parking, and conversion flexibility supports interest from owner-users and investors seeking a property with multiple use pathways.

Key Highlights

• 6,644 SF single‑tenant flex space
• 2.41‑acre site with ample on‑site parking
• Approximately 206 feet of frontage on Highway 65 NE

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

$72,179

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

8.71%

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%

$1,443,580 $1.4M

Cap Rate 7%

$1,031,129 $1.0M

Cap Rate 9%

$801,989 $802.0K

Market Conditions

NOI Build-Up for 6,644 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

$107.6K $16.20/SF

− Vacancy

−$4.5K −$0.68/SF

EGI

$103.1K $15.52/SF

− OpEx

−$30.9K −$4.66/SF

NOI

$72.2K $10.86/SF

Area

Chisago County, MN

Vacancy

4.20%

Lease Rate

$16.20 /SF/Yr

Expense Ratio

30.00%

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%

$1,443,580

Cap Rate 7%

$1,031,129

Cap Rate 9%

$801,989

Alternative Uses

Best Use

Flex RnD

$1.29M

$1.13M – $1.50M (±1% cap)

NOI $90,095 @ 7.0% cap · market cap 10.87%

Second Best

Industrial

$1.03M

$902.2K – $1.20M (±1% cap)

NOI $72,179 @ 7.0% cap · market cap 8.71%

Theoretical Best

Office A

$1.59M

$1.39M – $1.85M (±1% cap)

NOI $110,958 @ 7.0% cap · market cap 13.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Dental Office Real Estate Agency Parking Lot & Garage Big Box & Wholesale Store Plumbing Service Furniture & Home Goods

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

Single-tenant

Tenancy

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 55011, MN

10,517

Population

4,060

Households

2.6

Avg Household Size

42

Median Age

26%

College-Educated

96%

High-School Grad

45.9 sq mi

ZIP Area

229

Density / Sq Mi

$126,957

Median Household Income

$61,011

Median Earnings

$1,932

Median Rent

$380,000

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Flex space - Single-tenant flex space zoned B-2 with on-site parking and adaptable layouts for retail, office, or service uses.

Where is this flex space located?

The property is located at 20454 Hwy 65 NE East Bethel, MN.

What is the asking price?

The asking price for this property is $829,000.

What are key features of this property?

This property features: 6,644 SF single‑tenant flex space; 2.41‑acre site with ample on‑site parking; Approximately 206 feet of frontage on Highway 65 NE