Lake-View
For Sale
$375,000
217 East 7th Street, Duluth, MN 55805
Upper-level residences overlook the lake, and the building has received updates over time.
Property Size2,860 SF
Price / SF$131.12
Days on Market57
Property Features for 217 East 7th Street
General Information
Standard status
Active
Size
2,860 SF
Property subtype
Residential Income / Triplex
Additional Details
Gross Income
$43,800
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$6,304
Amenities
Forced Air
Full
8
3
Concrete
Wood
Building Details
Year Built
1892
Listing Agency:
Messina & Associates Real Estate
(218) 730-8660
Listed By:
Ayla Dougherty · License #MN 40585699
(218) 730-8660
Source:
Compass
Added: Jun 16
Changed: Aug 11
Last Checked: Aug 11 at 1:04PM
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 Messina & Associates Real Estate
Investment Insights
Based on property information with market context.
This three-unit residential income property contains 2,860 square feet and dates to 1892. The second- and third-floor units capture lake views, while updates completed over the years support the building’s current residential configuration. Forced-air heating is also identified among the property features.
Located at 217 East 7th Street in Duluth, Minnesota, the triplex offers a combination of established construction, multi-unit functionality, and elevated lake-facing views. The property may suit an investor or an owner-occupant seeking a three-unit building, as described in the listing information.
Located at 217 East 7th Street in Duluth, Minnesota, the triplex offers a combination of established construction, multi-unit functionality, and elevated lake-facing views. The property may suit an investor or an owner-occupant seeking a three-unit building, as described in the listing information.
Key Highlights
- Three‑unit property totaling 2,860 square feet
- Lake views from the second- and third‑floor units
- Updates completed throughout the building over the years
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
$25,486
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
6.80%
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%
$509,720
$509.7K
Cap Rate 7%
$364,086
$364.1K
Cap Rate 9%
$283,178
$283.2K
Market Conditions
NOI Build-Up for 2,860 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
$38.6K $13.50/SF
− Vacancy
−$2.2K −$0.77/SF
EGI
$36.4K $12.73/SF
− OpEx
−$10.9K −$3.82/SF
NOI
$25.5K $8.91/SF
Area
St. Louis County, MN
Vacancy
5.70%
Lease Rate
$13.50 /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%
$509,720
Cap Rate 7%
$364,086
Cap Rate 9%
$283,178
Alternative Uses
Best Use
Multifamily LT 5
$364.1K
$318.6K – $424.8K
NOI $25,486 @ 7.0% cap · market cap 6.80%
Second Best
Apartment 5plus
$334.6K
$292.8K – $390.4K
NOI $23,421 @ 7.0% cap · market cap 6.25%
Theoretical Best
Specialty Retail
$1.11M
$970.8K – $1.29M
NOI $77,661 @ 7.0% cap · market cap 20.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
3,812
Businesses Nearby
Explore this area
Business Placement
Demographics for 55805, MN
9,731
Population
5,430
Households
1.8
Avg Household Size
31
Median Age
37%
College-Educated
93%
High-School Grad
1.4 sq mi
ZIP Area
6,951
Density / Sq Mi
$43,077
Median Household Income
$26,309
Median Earnings
$984
Median Rent
$171,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Upper-level residences overlook the lake, and the building has received updates over time.
Where is this triplex located?
The property is located at 217 East 7th Street Duluth, MN.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Three‑unit property totaling 2,860 square feet; Lake views from the second- and third‑floor units; Updates completed throughout the building over the years
