Office Building with Stated CAP
For Sale
Contact for pricing
21 1st Street SW, Rochester, MN 55902
For-sale office building totaling 101,389 SF, presented with a stated 8.25% CAP and priced at $24.55 million.
Property Size101,389 SF
Price / SF$242.14
Days on Market81
Property Features for 21 1st Street SW
General Information
Standard status
Active
Size
101,389 SF
Class
A
Property subtype
Office
Occupancy
89%
Lease Type
NNN
Investment Type
Core+
Net Operating Income
$1,851,926
Additional Details
Cap Rate
8.25%
Building Details
Year Built
1981
Year Renovated
2020
Buildings
1
Stories
6
Tenancy
Multi
Listing Agency:
Matthews
Listed By:
Michael Moreno · License #CA 01982943
Source:
Crexi
Added: Jun 3
Changed: Aug 8
Last Checked: Aug 21 at 9:47PM
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
Investment Insights
Based on property information with market context.
This offering is a for-sale office building with a total size of 101,389 square feet. The property is presented in an income-oriented format, with the public remarks listing an 8.25% CAP for the asset.
The building is located at 21 1st Street SW in Rochester, Minnesota (55902). Buyers will typically review the existing office configuration and building systems as part of underwriting, along with the income assumptions reflected in the stated CAP rate.
For buyers, the combination of office use and the stated 8.25% CAP may fit an investment underwriting approach focused on current income characteristics. Tenants and owner-operators can also evaluate the property as an office real estate platform, using the building’s overall square footage and office functionality as the starting point for space planning and leasing considerations. The property is listed at $24,550,000.
The building is located at 21 1st Street SW in Rochester, Minnesota (55902). Buyers will typically review the existing office configuration and building systems as part of underwriting, along with the income assumptions reflected in the stated CAP rate.
For buyers, the combination of office use and the stated 8.25% CAP may fit an investment underwriting approach focused on current income characteristics. Tenants and owner-operators can also evaluate the property as an office real estate platform, using the building’s overall square footage and office functionality as the starting point for space planning and leasing considerations. The property is listed at $24,550,000.
Key Highlights
- Office building totaling 101,389 SF
- Stated 8.25% CAP
- Year built: 1981
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
$1,868,346
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
7.61%
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%
$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
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
$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 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%
$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.
Property Analytics
Property Profile
Current Use
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
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - For-sale office building totaling 101,389 SF, presented with a stated 8.25% CAP and priced at $24.55 million.
Where is this office building located?
The property is located at 21 1st Street 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: Office building totaling 101,389 SF; Stated 8.25% CAP; Year built: 1981
