Highway Frontage Commercial
For Sale
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2401 Hwy 13 W, Burnsville, MN 55337
15,352 SF mixed-use building with highway visibility in Burnsville.
Property Size15,352 SF
Lot Size1.00 Acre
Price / SF$150
Days on Market168
Property Features for 2401 Hwy 13 W
General Information
Standard status
Active
Size
15,352 SF
Lot size
1.00 Acre
Property subtype
Mixed Use, Office, Retail
Zoning
B4
Listing Agency:
Gonyea Commercial Properties
(218) 791-5347
Listed By:
Hunter Stanek · License #MN 40517993
Source:
Crexi
Added: Mar 4
Changed: Aug 8
Last Checked: Aug 3 at 3:30PM
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 Gonyea Commercial Properties
Investment Insights
Based on property information with market context.
This 15,352 square foot mixed-use building is situated on a 1-acre lot and offers an owner-user or investment opportunity. Constructed between 1975 and 1985, the property is zoned B-4 Highway Commercial and features a sprinkler system. The building includes 6,405 square feet of office/showroom space and 8,947 square feet of warehouse space, plus a 1,000 square foot mezzanine. The warehouse area provides 14 to 20-foot clear heights, one dock door, and two drive-in doors, with the potential to install an additional dock door. The property benefits from prime frontage on Highway 13, offering excellent visibility and access. It is located adjacent to Menards (Burnsville Super Menards) and includes large storefront signage and a free-standing pylon sign. The property is configured for two tenants. Recent improvements include a new roof on the front building installed in September 2023 and a new roof on the middle building installed in September 2021. The 2025 property taxes are $38,928. The property is available now.
Key Highlights
- Prime Highway 13 frontage with excellent visibility and access, adjacent to Menards.
- Configured for two tenants, offering owner‑user or investment opportunity.
- New roofs on front and middle buildings (September 2023 and 2021).
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
$202,518
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
8.79%
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%
$4,050,360
$4.1M
Cap Rate 7%
$2,893,114
$2.9M
Cap Rate 9%
$2,250,200
$2.3M
Market Conditions
NOI Build-Up for 15,352 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
$248.7K $16.20/SF
− Vacancy
−$10.4K −$0.68/SF
EGI
$238.3K $15.52/SF
− OpEx
−$35.7K −$2.33/SF
NOI
$202.5K $13.19/SF
Area
Dakota County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$4,050,360
Cap Rate 7%
$2,893,114
Cap Rate 9%
$2,250,200
Alternative Uses
Best Use
Warehouse
$2.89M
$2.53M – $3.38M
NOI $202,518 @ 7.0% cap · market cap 8.79%
Second Best
Mixed Use
$2.61M
$2.28M – $3.04M
NOI $182,382 @ 7.0% cap · market cap 7.92%
Theoretical Best
Healthcare Medical
$3.78M
$3.31M – $4.41M
NOI $264,454 @ 7.0% cap · market cap 11.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
287
Businesses Nearby
Explore this area
Business Placement
Demographics for 55337, MN
47,333
Population
19,695
Households
2.4
Avg Household Size
37
Median Age
39%
College-Educated
93%
High-School Grad
18.7 sq mi
ZIP Area
2,531
Density / Sq Mi
$81,641
Median Household Income
$46,602
Median Earnings
$1,463
Median Rent
$327,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 15,352 SF mixed-use building with highway visibility in Burnsville.
Where is this mixed-use property located?
The property is located at 2401 Hwy 13 W Burnsville, MN.
What is the asking price?
The asking price for this property is $2,302,800.
What are key features of this property?
This property features: Prime Highway 13 frontage with excellent visibility and access, adjacent to Menards.; Configured for two tenants, offering owner‑user or investment opportunity.; New roofs on front and middle buildings (September 2023 and 2021).
