Building Details

Building Size 3,585 SF

Year Built 1996

Listing Agency: Brisky Net Lease

Listed By: Brian Brisky · License #56114 Show Phone

Source: Commercialcafe

Added: Jul 29 Changed: Sep 11 Last Checked: Sep 14 at 6:20AM

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Investment Insights

Based on property information with market context.

Gas station for sale with an Absolute NNN structure secured by a new 15-year NNN lease featuring 2% annual rent increases. The property totals 3,585 SF and is positioned for strong daily demand from passing motorists.

Set on a prominent corner lot, the site offers multiple points of access and exceptional visibility along Highway 65, a heavily traveled north–south commuter corridor connecting the Twin Cities metro to northern suburbs. The property is directly along Highway 65 and adjacent to a park-and-ride facility, supporting consistent commuter exposure.

The offering also cites strong market fundamentals, including approximately 2.7% vacancy in the Minneapolis market and 2.9% vacancy in the Coon Rapids submarket. East Bethel is described as an established bedroom community about 30 miles north of Minneapolis, supported by steady residential growth and household demographics.

Key Highlights

• New 15‑year Absolute NNN lease with 2% annual rent increases
• High‑visibility corner lot with multiple points of access
• Direct Highway 65 frontage with traffic counts exceeding 21,000 vehicles per day

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

$53,076

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

2.99%

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%

$1,061,520 $1.1M

Cap Rate 7%

$758,229 $758.2K

Cap Rate 9%

$589,733 $589.7K

Market Conditions

NOI Build-Up for 3,585 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

$75.3K $21.00/SF

− Vacancy

−$4.5K −$1.26/SF

EGI

$70.8K $19.74/SF

− OpEx

−$17.7K −$4.94/SF

NOI

$53.1K $14.81/SF

Area

Chisago County, MN

Vacancy

6.00%

Lease Rate

$21.00 /SF/Yr

Expense Ratio

25.00%

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%

$1,061,520

Cap Rate 7%

$758,229

Cap Rate 9%

$589,733

Alternative Uses

Best Use

Specialty Retail

$758.2K

$663.5K – $884.6K (±1% cap)

NOI $53,076 @ 7.0% cap · market cap 2.99%

Second Best

Retail

$630.8K

$551.9K – $735.9K (±1% cap)

NOI $44,154 @ 7.0% cap · market cap 2.49%

Theoretical Best

Office A

$855.3K

$748.4K – $997.9K (±1% cap)

NOI $59,871 @ 7.0% cap · market cap 3.37%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Gas stations

Suggested Use

Top Pick Real Estate Agency Building Supply Electrical Service Restaurant Storage Facility Hair Salon

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

21,000 VPD

Traffic count

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

46

Businesses Nearby

11k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 68% Dining 32%

Sinclair Shops & Services

7,185 visits/mo 0.1 miles

SUBWAY Dining

3,426 visits/mo 0.0 miles

Demographics for 55005, MN

4,927

Population

1,750

Households

2.8

Avg Household Size

37

Median Age

15%

College-Educated

95%

High-School Grad

18.9 sq mi

ZIP Area

261

Density / Sq Mi

$109,464

Median Household Income

$54,052

Median Earnings

$1,791

Median Rent

$324,600

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this gas stations located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Gas station - High-visibility corner gas station on Highway 65 with multiple access points and traffic counts exceeding 21,000 vehicles per day.

Where is this gas station located?

The property is located at 23705 Hwy 65 NE East Bethel, MN.

What is the asking price?

The asking price for this property is $1,775,000.

What are key features of this property?

This property features: New 15‑year Absolute NNN lease with 2% annual rent increases; High‑visibility corner lot with multiple points of access; Direct Highway 65 frontage with traffic counts exceeding 21,000 vehicles per day