Listing Agency: GRAND PROPERTIES REAL ESTATE Show Phone

Listed By: Brandon Saloka

Source: Exprealty

Added: May 20 Changed: Aug 8 Last Checked: Aug 11 at 11:10AM

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Investment Insights

Based on property information with market context.

This property features a 60x84 pole shed with durable 6-inch concrete floors. The space is built for flexible use, with zoned in-floor heat and water service already in place. Plumbing has been set up for three individual garage spaces, which can support multiple work areas or storage configurations depending on how the building is used.

The site sits on just under 3 acres and offers views of Pokegama Lake. The setting provides privacy and room to expand, supported by the property’s scenic surroundings as described in the remarks.

The combination of heavy concrete, in-floor heat, and pre-plumbed garage space makes this warehouse-style building a practical fit for contractors, hobbyists, or operators needing durable indoor storage and a versatile layout. With water service available and the building configured to divide into three garage areas, it can also accommodate a range of future uses consistent with the existing improvements.

Key Highlights

• Just under 3 acres with views of Pokegama Lake
• 60x84 pole shed with durable 6‑inch concrete floors
• Zoned in‑floor heat

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

$19,203

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

4.01%

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%

$384,060 $384.1K

Cap Rate 7%

$274,329 $274.3K

Cap Rate 9%

$213,367 $213.4K

Market Conditions

NOI Build-Up for 5,040 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

$27.4K $5.44/SF

− Vacancy

−$4.8K −$0.96/SF

EGI

$22.6K $4.48/SF

− OpEx

−$3.4K −$0.67/SF

NOI

$19.2K $3.81/SF

Area

Itasca County, MN

Vacancy

17.60%

Lease Rate

$5.44 /SF/Yr

Expense Ratio

15.00%

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%

$384,060

Cap Rate 7%

$274,329

Cap Rate 9%

$213,367

Alternative Uses

Best Use

Warehouse

$274.3K

$240.0K – $320.1K (±1% cap)

NOI $19,203 @ 7.0% cap · market cap 4.01%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$485.9K

$425.2K – $566.9K (±1% cap)

NOI $34,013 @ 7.0% cap · market cap 7.10%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Warehouses

Suggested Use

Top Pick Nursing Home

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

3

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 55721, MN

3,667

Population

1,924

Households

1.9

Avg Household Size

48

Median Age

31%

College-Educated

95%

High-School Grad

93.5 sq mi

ZIP Area

39

Density / Sq Mi

$82,750

Median Household Income

$39,671

Median Earnings

$682

Median Rent

$267,100

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

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Frequently Asked Questions

What type of property is this?

Warehouse - Versatile pole shed on just under three acres with concrete flooring, in-floor heat, and utilities set for three garages.

Where is this warehouse located?

The property is located at 21851 Moose Point Rd Cohasset, MN.

What is the asking price?

The asking price for this property is $479,000.

What are key features of this property?

This property features: Just under 3 acres with views of Pokegama Lake; 60x84 pole shed with durable 6‑inch concrete floors; Zoned in‑floor heat