Renovated Flex Space with
For Sale
$299,000
2225 Highway 63 N, Stewartville, MN 55976
Renovated offices pair with a heated, finished garage and fenced outdoor storage area.
Property Size3,068 SF
Price / SF$97.46
Days on Market44
Property Features for 2225 Highway 63 N
General Information
Standard status
Active
Size
3,068 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Utilities to Site
Yes
Warehouse & Industrial
Power
200 amps
Heavy Power
Yes
Building Details
Year Built
1964
Listing Agency:
eXp Realty
(612) 240-3570
Listed By:
Steven Eischens
Source:
Homesminn
Added: Jul 20
Changed: Aug 31
Last Checked: Aug 31 at 6:30PM
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 eXp Realty
Investment Insights
Based on property information with market context.
This 3,068-square-foot flex property, built in 1964, combines updated office space with attached shop capacity. Recent improvements include new flooring, paint, windows, a front entry door, kitchen finishes, and bathroom updates. The building includes three private offices and one bathroom, while the finished, insulated, heated two-car garage adds practical workspace. Electrical features include a 200-amp basement service, subpanel, and dedicated welding outlet.
A cleared rear lot provides space for equipment storage, commercial vehicle parking, and other outdoor business needs. Much of the site has a breaker-run base, and privacy fencing extends around nearly the full perimeter. The property is located at 2225 Highway 63 N in High Forest Twp, immediately adjacent to the I-90 interchange entering Stewartville and just south of Rochester, with direct positioning along US Highway 63.
A cleared rear lot provides space for equipment storage, commercial vehicle parking, and other outdoor business needs. Much of the site has a breaker-run base, and privacy fencing extends around nearly the full perimeter. The property is located at 2225 Highway 63 N in High Forest Twp, immediately adjacent to the I-90 interchange entering Stewartville and just south of Rochester, with direct positioning along US Highway 63.
Key Highlights
- 3,068‑square‑foot flex property on a 0.??
- Three private offices and one bathroom
- Finished, insulated, heated two‑car garage with welding outlet
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
$27,520
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
9.20%
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%
$550,400
$550.4K
Cap Rate 7%
$393,143
$393.1K
Cap Rate 9%
$305,778
$305.8K
Market Conditions
NOI Build-Up for 3,068 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
$46.0K $15.00/SF
− Vacancy
−$3.7K −$1.20/SF
EGI
$42.3K $13.80/SF
− OpEx
−$14.8K −$4.83/SF
NOI
$27.5K $8.97/SF
Area
Olmsted County, MN
Vacancy
8.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
35.00%
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%
$550,400
Cap Rate 7%
$393,143
Cap Rate 9%
$305,778
Alternative Uses
Best Use
Office B
$546.6K
$478.3K – $637.7K
NOI $38,261 @ 7.0% cap · market cap 12.80%
Second Best
Flex RnD
$393.1K
$344.0K – $458.7K
NOI $27,520 @ 7.0% cap · market cap 9.20%
Theoretical Best
Office A
$809.3K
$708.2K – $944.2K
NOI $56,652 @ 7.0% cap · market cap 18.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Heavy power
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
111
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55976, MN
8,338
Population
3,462
Households
2.4
Avg Household Size
37
Median Age
30%
College-Educated
96%
High-School Grad
91.0 sq mi
ZIP Area
92
Density / Sq Mi
$79,044
Median Household Income
$49,839
Median Earnings
$977
Median Rent
$277,700
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?
Flex space - Renovated offices pair with a heated, finished garage and fenced outdoor storage area.
Where is this flex space located?
The property is located at 2225 Highway 63 N Stewartville, MN.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: 3,068‑square‑foot flex property on a 0.??; Three private offices and one bathroom; Finished, insulated, heated two‑car garage with welding outlet
