Renovated Office
21 1st St SW, Rochester, MN 55902
For Sale
$24,550,000
Multi-tenant office property with substantial 2020 renovations, established tenancy, and direct connections to downtown pedestrian infrastructure.
Property Size101,389 SF
Price / SF$242.14
Days on Market49
Property Features for 21 1st St SW
General Information
Standard status
Size
Property subtype
Occupancy
Net Operating Income
Site & Location
Neighborhood
Public Transit
Building Details
Year Renovated
Tenancy
Listing Agency:
Matthews Real Estate Investments Services | New York
Listed By:
Michael Moreno · License CA #01982943
(949) 432-4511
Source:
Matthews
Added: Sep 22
Changed: Oct 26
Last Checked: Nov 8 at 2:11AM
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 Matthews Real Estate Investments Services | New York
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Investment Insights
Based on property information with market context.
This 101,389 SF office property is 89% leased, with primarily NNN lease structures and contractual annual rent escalations. The building underwent a comprehensive renovation in 2020, followed by additional improvements supporting long-term commitments from major occupants. Mayo Clinic leases roughly 47% of the rentable area, while Wells Fargo occupies approximately 22%; together, those tenants represent approximately 69% of the property’s rentable square footage.
Located at 21 1st St SW in downtown Rochester, the property is one block from the 754-bed Mayo Clinic Methodist Hospital and overlooks Peace Plaza. Direct connections to Rochester’s pedestrian skyway and subway system link the building with Mayo Clinic, hotels, parking facilities, restaurants, and other downtown amenities. Approximately 11% vacancy remains within the property.
Located at 21 1st St SW in downtown Rochester, the property is one block from the 754-bed Mayo Clinic Methodist Hospital and overlooks Peace Plaza. Direct connections to Rochester’s pedestrian skyway and subway system link the building with Mayo Clinic, hotels, parking facilities, restaurants, and other downtown amenities. Approximately 11% vacancy remains within the property.
Key Highlights
- 101,389 SF office property with 89% leased occupancy
- Primarily NNN lease structures with contractual annual rent escalations
- Mayo Clinic occupies roughly 47% of rentable square footage
Financial Insights
Estimated NOI and Cap Rate
NOI / Yr
$1,868,346
Cap Rate
7.61%
Suggested Prices Based on Cap Rates
Cap Rate 5%
$37,366,920
$37.4M
Cap Rate 7%
$26,690,657
$26.7M
Cap Rate 9%
$20,759,400
$20.8M
Market Conditions
NOI Build-Up for 101,389 SF
Gross rent
$2.74M $27.00/SF
− Vacancy
−$246.4K −$2.43/SF
EGI
$2.49M $24.57/SF
− OpEx
−$622.8K −$6.14/SF
NOI
$1.87M $18.43/SF
Area
Rochester, MN
Vacancy
9.00%
Lease Rate
$27.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap Rate 5%
$37,366,920
Cap Rate 7%
$26,690,657
Cap Rate 9%
$20,759,400
Alternative Uses
Best Use
Office B
$26.69M
$23.35M – $31.14M
NOI $1,868,346 @ 7.0% cap · market cap 7.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$39.05M
$34.17M – $45.56M
NOI $2,733,512 @ 7.0% cap · market cap 11.13%
Zoning and permitted uses should be independently verified with authorities.
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Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
7,290
Businesses Nearby
Explore this area
Business Placement
Demographics for 55902, MN
25,878
Population
11,954
Households
2.2
Avg Household Size
40
Median Age
66%
College-Educated
98%
High-School Grad
41.1 sq mi
ZIP Area
630
Density / Sq Mi
$111,879
Median Household Income
$68,869
Median Earnings
$1,580
Median Rent
$430,100
Median Home Value
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Market
Vacancy Rate% for Office in Midwest region
Frequently Asked Questions
What type of property is this?
Office building - Multi-tenant office property with substantial 2020 renovations, established tenancy, and direct connections to downtown pedestrian infrastructure.
Where is this office building located?
The property is located at 21 1st St SW Rochester, MN.
What is the asking price?
The asking price for this property is $24,550,000.
What are key features of this property?
This property features: 101,389 SF office property with 89% leased occupancy; Primarily NNN lease structures with contractual annual rent escalations; Mayo Clinic occupies roughly 47% of rentable square footage
