Building Details

Year Built 1985

Buildings 3

Listing Agency: Keller Williams Premier Realty

Listed By: Brigg Backer

Source: Homesminn

Added: Sep 18 Last Checked: Sep 24 at 2:23PM

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Investment Insights

Based on property information with market context.

This multifamily property comprises three separate fourplex buildings constructed in 1985, with a total property size of 4,352 square feet. The units offer a three-bedroom, one-bath layout, and three units include updated kitchens and bathrooms. Each unit is accompanied by a deck and tandem garage access.

The property is located at 220 Hallam Avenue S in Mahtomedi, within the Mahtomedi School District. The surrounding setting is described as quiet, with substantial green space. The buildings have been maintained and managed by long-term owners.

Key Highlights

• Three separate fourplex buildings at 220 Hallam Avenue S
• 4,352‑square‑foot property constructed in 1985
• Three‑bedroom, one‑bath unit layouts

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

$57,001

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

7.13%

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%

$1,140,020 $1.1M

Cap Rate 7%

$814,300 $814.3K

Cap Rate 9%

$633,344 $633.3K

Market Conditions

NOI Build-Up for 4,352 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

$86.2K $19.80/SF

− Vacancy

−$4.7K −$1.09/SF

EGI

$81.4K $18.71/SF

− OpEx

−$24.4K −$5.61/SF

NOI

$57.0K $13.10/SF

Area

Washington County, MN

Vacancy

5.50%

Lease Rate

$19.80 /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%

$1,140,020

Cap Rate 7%

$814,300

Cap Rate 9%

$633,344

Alternative Uses

Best Use

Multifamily LT 5

$814.3K

$712.5K – $950.0K (±1% cap)

NOI $57,001 @ 7.0% cap · market cap 7.13%

Second Best

Apartment 5plus

$756.2K

$661.7K – $882.3K (±1% cap)

NOI $52,937 @ 7.0% cap · market cap 6.62%

Theoretical Best

Office A

$1.21M

$1.06M – $1.41M (±1% cap)

NOI $84,620 @ 7.0% cap · market cap 10.58%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Quadplexes

Suggested Use

Top Pick Real Estate Agency Hair Salon Restaurant Spa & Massage Center Auto Repair Shop Dental Office

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

12

Residential units

Location Intelligence

Trade Area within ½ mile

195

Businesses Nearby

Explore this area Business Placement

Demographics for 55115, MN

8,880

Population

3,408

Households

2.6

Avg Household Size

45

Median Age

63%

College-Educated

98%

High-School Grad

6.1 sq mi

ZIP Area

1,456

Density / Sq Mi

$132,796

Median Household Income

$71,786

Median Earnings

$1,510

Median Rent

$481,900

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 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 quadplexes located? What is the asking price? Find similar properties What are key features of this property?

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Duplex with Lake Access

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Three-Fourplex Apartment Property

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Frequently Asked Questions

What type of property is this?

Quadplex - Each unit includes a deck and tandem garage access in a quiet, green-space setting.

Where is this quadplex located?

The property is located at 220 Hallam Ave S Mahtomedi, MN.

What is the asking price?

The asking price for this property is $800,000.

What are key features of this property?

This property features: Three separate fourplex buildings at 220 Hallam Avenue S; 4,352‑square‑foot property constructed in 1985; Three‑bedroom, one‑bath unit layouts