Landmark Commercial Facility in
For Sale
Contact for pricing
23836 Smiley Road, Nisswa, MN 56468
Three-story commercial facility suitable for entertainment, restaurant, or office/retail.
Property Size14,642 SF
Price / SF$109.27
Days on Market164
Property Features for 23836 Smiley Road
General Information
Standard status
Active
Size
14,642 SF
Total Parking Spaces
41
Property subtype
Retail, Office, Special Purpose
Zoning
HB - Highway Business District
Lease Type
NNN
Building Details
Year Built
2002
Buildings
1
Stories
3
Tenancy
Multi
Listing Agency:
Close-Converse Commercial Properties
(218) 828-3334
Listed By:
Chris Close, CCIM · License #MN 20286846
Source:
Crexi
Added: Mar 9
Changed: Aug 15
Last Checked: Aug 18 at 5:25AM
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 Close-Converse Commercial Properties
Investment Insights
Based on property information with market context.
This three-story commercial facility is located along Hwy 371 in Nisswa. The property is suited for an entertainment venue, restaurant, reception hall, brewery concept, or creative office/retail use. The main level features a large open reception/event space and a commercial kitchen with walk-in coolers. It also includes a separate entertainment area with existing axe-throwing lanes. The upper level offers additional open space for dining or events and includes access to a rooftop deck. The lower level, formerly brewery operations, now provides expansive warehouse-style space with walk-in coolers, mezzanine seating, storage areas, and restroom facilities. Outdoor amenities include a patio with a band shell for live music or events, and two overhead doors, including a loading dock. Ample paved front parking is available, along with additional gravel parking in the rear. The property has visibility along one of the Lakes Area’s primary corridors. From Hwy 371 and CR 77/CR 13 Stoplight Intersection in Nisswa, head East on CR 13, then South on Smiley Road. The property is on the West just after Spirits of Nisswa. The property size is 14642 square feet.
Key Highlights
- Landmark commercial facility on Hwy 371 in Nisswa with exceptional visibility.
- Versatile three‑story layout suitable for entertainment, restaurant, events, brewery, or office/retail.
- Includes a large open reception/event space, commercial kitchen with walk‑in coolers, and axe‑throwing lanes.
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
$135,784
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
8.49%
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%
$2,715,680
$2.7M
Cap Rate 7%
$1,939,771
$1.9M
Cap Rate 9%
$1,508,711
$1.5M
Market Conditions
NOI Build-Up for 14,642 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
$210.8K $14.40/SF
− Vacancy
−$16.9K −$1.15/SF
EGI
$194.0K $13.25/SF
− OpEx
−$58.2K −$3.97/SF
NOI
$135.8K $9.27/SF
Area
Crow Wing County, MN
Vacancy
8.00%
Lease Rate
$14.40 /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%
$2,715,680
Cap Rate 7%
$1,939,771
Cap Rate 9%
$1,508,711
Alternative Uses
Best Use
Specialty Retail
$2.51M
$2.19M – $2.93M
NOI $175,523 @ 7.0% cap · market cap 10.97%
Second Best
Retail
$1.94M
$1.70M – $2.26M
NOI $135,784 @ 7.0% cap · market cap 8.49%
Theoretical Best
Office A
$3.11M
$2.72M – $3.63M
NOI $217,592 @ 7.0% cap · market cap 13.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
138
Businesses Nearby
25k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
Holiday Station Store
Shops & Services
17,897 visits/mo
0.1 miles
Wendy's
Dining
7,387 visits/mo
0.1 miles
Demographics for 56468, MN
4,525
Population
3,653
Households
1.2
Avg Household Size
53
Median Age
42%
College-Educated
96%
High-School Grad
49.8 sq mi
ZIP Area
91
Density / Sq Mi
$103,698
Median Household Income
$49,531
Median Earnings
$995
Median Rent
$437,000
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?
Restaurant - Three-story commercial facility suitable for entertainment, restaurant, or office/retail.
Where is this restaurant located?
The property is located at 23836 Smiley Road Nisswa, MN.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Landmark commercial facility on Hwy 371 in Nisswa with exceptional visibility.; Versatile three‑story layout suitable for entertainment, restaurant, events, brewery, or office/retail.; Includes a large open reception/event space, commercial kitchen with walk‑in coolers, and axe‑throwing lanes.
