Listing Agency: Greg Follmer Commercial Real Estate Show Phone

Listed By: Greg Follmer · License #27078 Show Phone

Source: Moodyscre

Added: May 20 Changed: Aug 30 Last Checked: Aug 31 at 3:29PM

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Investment Insights

Based on property information with market context.

This 7,488-square-foot warehouse features an insulated, finished interior, heavy power, and large overhead doors. The property also includes a substantial amount of land beyond the building area. Located at 2374 Peat Plant Rd in Eveleth, Minnesota, the asset offers a combination of finished space and industrial-oriented physical features within a warehouse configuration.

Key Highlights

• 7,488‑square‑foot warehouse building
• Heavy power service
• Insulated, finished interior

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

$35,965

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

7.27%

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%

$719,300 $719.3K

Cap Rate 7%

$513,786 $513.8K

Cap Rate 9%

$399,611 $399.6K

Market Conditions

NOI Build-Up for 7,488 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

$44.0K $5.88/SF

− Vacancy

−$1.7K −$0.23/SF

EGI

$42.3K $5.65/SF

− OpEx

−$6.3K −$0.85/SF

NOI

$36.0K $4.80/SF

Area

St. Louis County, MN

Vacancy

3.90%

Lease Rate

$5.88 /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%

$719,300

Cap Rate 7%

$513,786

Cap Rate 9%

$399,611

Alternative Uses

Best Use

Warehouse

$513.8K

$449.6K – $599.4K (±1% cap)

NOI $35,965 @ 7.0% cap · market cap 7.27%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$2.90M

$2.54M – $3.39M (±1% cap)

NOI $203,330 @ 7.0% cap · market cap 41.08%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Warehouses

Suggested Use

Top Pick Building Supply Storage Facility Furniture & Home Goods Big Box & Wholesale Store

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

Yes

Heavy power

Location Intelligence

Trade Area within ½ mile

13

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 55734, MN

5,964

Population

3,516

Households

1.7

Avg Household Size

46

Median Age

25%

College-Educated

96%

High-School Grad

78.2 sq mi

ZIP Area

76

Density / Sq Mi

$65,750

Median Household Income

$47,015

Median Earnings

$851

Median Rent

$143,700

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

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Frequently Asked Questions

What type of property is this?

Warehouse - The property combines finished interior space with heavy electrical service and large overhead doors.

Where is this warehouse located?

The property is located at 2374 Peat Plant Rd Eveleth, MN.

What is the asking price?

The asking price for this property is $495,000.

What are key features of this property?

This property features: 7,488‑square‑foot warehouse building; Heavy power service; Insulated, finished interior