Restaurant with Commercial
For Sale
$3,100,000
2501 Marshall Street NE, Minneapolis, MN 55418
Operating venue with multiple dining areas, an expansive patio, and a garden room featuring operable glass garage doors.
Property Size8,400 SF
Price / SF$369.05
Days on Market150
Property Features for 2501 Marshall Street NE
General Information
Standard status
Active
Size
8,400 SF
Total Parking Spaces
43
Property subtype
General Commercial
Zoning
C2
Restaurant
Patio
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$56,357
Amenities
Ferris Wheel
drive-in delivery door
private office
security systems
3
Parking.
Lot.
Building Details
Year Built
1984
Year Renovated
2025
Buildings
1
Listing Agency:
RE/MAX Advantage Plus
(406) 314-3333
Listed By:
Jeremy Feldmann · License #40169559
(406) 314-3333
Source:
Xome
Added: Apr 4
Changed: Aug 30
Last Checked: Apr 24 at 8:07AM
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 RE/MAX Advantage Plus
Investment Insights
Based on property information with market context.
This operating restaurant and bar property includes the real estate and business, with an 8,400 SF building on nearly 1 acre. The facility was remodeled and expanded in 2014 and 2025. Interior improvements include multiple dining areas, a main bar, private office, security systems, two large ADA-compliant public restrooms, and a separate dedicated ADA restroom. The site also features an expansive patio and a Garden Room with operable glass garage doors.
Food-service infrastructure includes a commercial kitchen with two full-service food lines, walk-in cooler and freezer, dry storage, a dedicated liquor room, and a drive-in delivery door. Additional property features include 43 off-street parking spaces and a custom-built, full-size Ferris Wheel manufactured in Europe and installed in 2014. The property is zoned C2 and located at the corner of Marshall Ave and Lowry Ave in Minneapolis’s NE Arts District.
Food-service infrastructure includes a commercial kitchen with two full-service food lines, walk-in cooler and freezer, dry storage, a dedicated liquor room, and a drive-in delivery door. Additional property features include 43 off-street parking spaces and a custom-built, full-size Ferris Wheel manufactured in Europe and installed in 2014. The property is zoned C2 and located at the corner of Marshall Ave and Lowry Ave in Minneapolis’s NE Arts District.
Key Highlights
- 8,400 SF restaurant and bar building on nearly 1 acre
- Sale includes the real estate and operating restaurant business
- Commercial kitchen with two full‑service food lines, walk‑in cooler/freezer, dry storage, and dedicated liquor room
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
$113,899
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
3.67%
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%
$2,277,980
$2.3M
Cap Rate 7%
$1,627,129
$1.6M
Cap Rate 9%
$1,265,544
$1.3M
Market Conditions
NOI Build-Up for 8,400 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
$156.2K $18.60/SF
− Vacancy
−$4.4K −$0.52/SF
EGI
$151.9K $18.08/SF
− OpEx
−$38.0K −$4.52/SF
NOI
$113.9K $13.56/SF
Area
Minneapolis, MN
Vacancy
2.80%
Lease Rate
$18.60 /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%
$2,277,980
Cap Rate 7%
$1,627,129
Cap Rate 9%
$1,265,544
Alternative Uses
Best Use
Specialty Retail
$1.63M
$1.42M – $1.90M
NOI $113,899 @ 7.0% cap · market cap 3.67%
Second Best
Industrial
$1.27M
$1.11M – $1.49M
NOI $89,198 @ 7.0% cap · market cap 2.88%
Theoretical Best
Office A
$2.00M
$1.75M – $2.34M
NOI $140,285 @ 7.0% cap · market cap 4.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
568
Businesses Nearby
19k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 54%
Shops & Services 46%
Burger King
Dining
10,143 visits/mo
0.5 miles
BP
Shops & Services
8,742 visits/mo
0.4 miles
Demographics for 55418, MN
31,887
Population
14,859
Households
2.1
Avg Household Size
37
Median Age
51%
College-Educated
93%
High-School Grad
7.0 sq mi
ZIP Area
4,555
Density / Sq Mi
$95,630
Median Household Income
$56,491
Median Earnings
$1,349
Median Rent
$332,500
Median Home Value
Market
Vacancy Rate% for Retail in Minneapolis, MN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Operating venue with multiple dining areas, an expansive patio, and a garden room featuring operable glass garage doors.
Where is this conventional restaurant located?
The property is located at 2501 Marshall Street NE Minneapolis, MN.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: 8,400 SF restaurant and bar building on nearly 1 acre; Sale includes the real estate and operating restaurant business; Commercial kitchen with two full‑service food lines, walk‑in cooler/freezer, dry storage, and dedicated liquor room
