Four-Unit Property with Finished
For Sale
$569,900
2507 Lyndale Ave S, Minneapolis, MN 55405
CM2-zoned fourplex with flexible month-to-month occupancy and an attic area requiring a kitchen addition for unit conversion.
Property Size3,308 SF
Price / SF$172.28
Days on Market37
Property Features for 2507 Lyndale Ave S
General Information
Standard status
Active
Size
3,308 SF
Total Parking Spaces
1
Property subtype
Multi-Family
Zoning
CM2
Occupancy
100%
Additional Details
Road Access
Yes
Multifamily Units
4
Building Details
Year Built
1900
Tenancy
Multi
Listing Agency:
Coldwell Banker Realty - Lakes
Listed By:
Christian Knudson
(612) 387-1493
Source:
Searchhousesnow
Added: Jul 30
Changed: Aug 31
Last Checked: Sep 1 at 10:37PM
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 Coldwell Banker Realty - Lakes
Investment Insights
Based on property information with market context.
This fourplex, built in 1900, contains 3,308 square feet and includes four residential units plus an 899-square-foot finished attic. The largest unit exceeds 1,100 square feet and offers two bedrooms, an office, hardwood floors, high ceilings, built-ins, and separate front and rear entrances. A single-car garage is also included, and a rear staircase was completed in July 2025.
The property is zoned CM2, Minneapolis's Corridor Mixed Use District. The first level may support exploration of small-business use while residential units remain above, subject to city regulations and required approvals. Converting the finished attic into a fifth unit would require adding a kitchen and would change the property's status from residential to commercial with the City of Minneapolis.
All units are leased on a month-to-month basis, providing flexibility for future ownership and management decisions.
The property is zoned CM2, Minneapolis's Corridor Mixed Use District. The first level may support exploration of small-business use while residential units remain above, subject to city regulations and required approvals. Converting the finished attic into a fifth unit would require adding a kitchen and would change the property's status from residential to commercial with the City of Minneapolis.
All units are leased on a month-to-month basis, providing flexibility for future ownership and management decisions.
Key Highlights
- Fourplex with 3,308 square feet and an 899‑square‑foot finished attic
- CM2 zoning: Corridor Mixed Use District
- Largest unit exceeds 1,100 square feet with 2 bedrooms and an office
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
$48,332
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
8.48%
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%
$966,640
$966.6K
Cap Rate 7%
$690,457
$690.5K
Cap Rate 9%
$537,022
$537.0K
Market Conditions
NOI Build-Up for 3,308 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
$73.4K $22.20/SF
− Vacancy
−$4.4K −$1.33/SF
EGI
$69.0K $20.87/SF
− OpEx
−$20.7K −$6.26/SF
NOI
$48.3K $14.61/SF
Area
Minneapolis, MN
Vacancy
5.98%
Lease Rate
$22.20 /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%
$966,640
Cap Rate 7%
$690,457
Cap Rate 9%
$537,022
Alternative Uses
Best Use
Multifamily LT 5
$690.5K
$604.2K – $805.5K
NOI $48,332 @ 7.0% cap · market cap 8.48%
Second Best
Apartment 5plus
$634.2K
$554.9K – $739.9K
NOI $44,392 @ 7.0% cap · market cap 7.79%
Theoretical Best
Office A
$789.2K
$690.6K – $920.8K
NOI $55,245 @ 7.0% cap · market cap 9.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,088
Businesses Nearby
Explore this area
Business Placement
Demographics for 55405, MN
15,497
Population
8,724
Households
1.8
Avg Household Size
34
Median Age
59%
College-Educated
95%
High-School Grad
2.8 sq mi
ZIP Area
5,535
Density / Sq Mi
$70,425
Median Household Income
$47,271
Median Earnings
$1,188
Median Rent
$450,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Quadplex - CM2-zoned fourplex with flexible month-to-month occupancy and an attic area requiring a kitchen addition for unit conversion.
Where is this quadplex located?
The property is located at 2507 Lyndale Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $569,900.
What are key features of this property?
This property features: Fourplex with 3,308 square feet and an 899‑square‑foot finished attic; CM2 zoning: Corridor Mixed Use District; Largest unit exceeds 1,100 square feet with 2 bedrooms and an office
