Hastings Retail or Mixed-Use
For Sale
Contact for pricing
2324 Vermillion St, Hastings, MN 55033
4,560 SF building in Hastings, MN, ideal for retail.
Property Size3,060 SF
Price / SF$129.08
Days on Market161
Property Features for 2324 Vermillion St
General Information
Standard status
Active
Size
3,060 SF
Property subtype
Retail
Occupancy
100%
Listing Agency:
CIG Brokerage
(612) 963-5147
Listed By:
Chad Heer · License #40427410
Source:
Crexi
Added: Mar 3
Changed: Aug 8
Last Checked: Aug 10 at 6:26AM
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 CIG Brokerage
Investment Insights
Based on property information with market context.
Located in Hastings, MN, this property offers a 4,560 SF building suitable for retail or mixed-use purposes. The building, constructed in 1960, has been updated with over $125,000 in improvements over the past two years. It features a loading dock on the upper level. Situated on Vermillion Street (Highway 61) and zoned C-3, the property is positioned within a high-traffic commercial area. The property offers versatile space for a range of businesses and possible housing upstairs. Seller financing will be considered.
Key Highlights
- Prime location on Vermillion Street (Highway 61) in Hastings, MN, offering high traffic and visibility.
- Versatile 4,560 SF building suitable for retail or mixed‑use, including potential for housing upstairs.
- C‑3 zoning designation advantageous for commercial real estate ventures.
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
$36,353
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%
$727,060
$727.1K
Cap Rate 7%
$519,329
$519.3K
Cap Rate 9%
$403,922
$403.9K
Market Conditions
NOI Build-Up for 3,060 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
$66.1K $21.60/SF
− Vacancy
−$7.9K −$2.59/SF
EGI
$58.2K $19.01/SF
− OpEx
−$21.8K −$7.13/SF
NOI
$36.4K $11.88/SF
Area
Dakota County, MN
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$727,060
Cap Rate 7%
$519,329
Cap Rate 9%
$403,922
Alternative Uses
Best Use
Mixed Use
$519.3K
$454.4K – $605.9K
NOI $36,353 @ 7.0% cap · market cap 9.20%
Second Best
Retail
$461.0K
$403.4K – $537.9K
NOI $32,271 @ 7.0% cap · market cap 8.17%
Theoretical Best
Healthcare Medical
$753.0K
$658.9K – $878.5K
NOI $52,712 @ 7.0% cap · market cap 13.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
453
Businesses Nearby
295
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 100%
Green Mill Restaurant & Bar
Dining
295 visits/mo
0.5 miles
Demographics for 55033, MN
29,701
Population
11,884
Households
2.5
Avg Household Size
42
Median Age
31%
College-Educated
96%
High-School Grad
144.3 sq mi
ZIP Area
206
Density / Sq Mi
$102,026
Median Household Income
$55,060
Median Earnings
$1,174
Median Rent
$335,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - 4,560 SF building in Hastings, MN, ideal for retail.
Where is this retail space located?
The property is located at 2324 Vermillion St Hastings, MN.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Prime location on Vermillion Street (Highway 61) in Hastings, MN, offering high traffic and visibility.; Versatile 4,560 SF building suitable for retail or mixed‑use, including potential for housing upstairs.; C‑3 zoning designation advantageous for commercial real estate ventures.
