Built-Out Spa & Wellness
For Sale
Contact for pricing
2525 Railroad Avenue, Bismarck, ND 58501
Medical spa configuration with sauna rooms, multiple sinks, an ADA-compliant bathroom, and a dedicated reception area.
Property Size2,704 SF
Lot Size0.52 Acres
Price / SF$406.80
Days on Market95
Property Features for 2525 Railroad Avenue
General Information
Standard status
Active
Size
2,704 SF
Lot size
0.52 Acres
Property subtype
Retail, Special Purpose, Business for Sale
Additional Details
Asking Price
$1,100,000
Road Access
Yes
Building Details
Year Built
2019
Listing Agency:
Rise Property Brokers, Inc.
(701) 400-4445
Listed By:
Jon Lee · License #ND 11237
Source:
Crexi
Added: May 28
Changed: Aug 30
Last Checked: Aug 30 at 7:22AM
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 Rise Property Brokers, Inc.
Investment Insights
Based on property information with market context.
Located at 2525 Railroad Avenue in Bismarck, North Dakota, this 2,704 SF spa and wellness property was built in 2019. The interior is configured for medical spa use with a reception area, sauna rooms, multiple sinks, large windows, and an ADA-compliant bathroom.
The property includes a 22,766 SF lot and is identified as Unit 2. South 26th Street carries a reported 12,420 vehicles per day, providing an established traffic setting for the property.
The property includes a 22,766 SF lot and is identified as Unit 2. South 26th Street carries a reported 12,420 vehicles per day, providing an established traffic setting for the property.
Key Highlights
- 2,704 SF spa and wellness property built in 2019
- 22,766 SF lot at 2525 Railroad Avenue, Unit 2
- Medical spa layout with reception area and sauna rooms
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
$35,120
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
3.19%
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%
$702,400
$702.4K
Cap Rate 7%
$501,714
$501.7K
Cap Rate 9%
$390,222
$390.2K
Market Conditions
NOI Build-Up for 2,704 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
$54.5K $20.16/SF
− Vacancy
−$7.7K −$2.84/SF
EGI
$46.8K $17.32/SF
− OpEx
−$11.7K −$4.33/SF
NOI
$35.1K $12.99/SF
Area
Burleigh County, ND
Vacancy
14.10%
Lease Rate
$20.16 /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%
$702,400
Cap Rate 7%
$501,714
Cap Rate 9%
$390,222
Alternative Uses
Best Use
Office B
$501.7K
$439.0K – $585.3K
NOI $35,120 @ 7.0% cap · market cap 3.19%
Second Best
Healthcare Medical
$460.5K
$402.9K – $537.3K
NOI $32,235 @ 7.0% cap · market cap 2.93%
Theoretical Best
Office A
$643.5K
$563.0K – $750.7K
NOI $45,042 @ 7.0% cap · market cap 4.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
644
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 58501, ND
28,388
Population
13,445
Households
2.1
Avg Household Size
38
Median Age
35%
College-Educated
95%
High-School Grad
22.8 sq mi
ZIP Area
1,245
Density / Sq Mi
$69,796
Median Household Income
$45,237
Median Earnings
$938
Median Rent
$276,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Spa & wellness property - Medical spa configuration with sauna rooms, multiple sinks, an ADA-compliant bathroom, and a dedicated reception area.
Where is this spa & wellness property located?
The property is located at 2525 Railroad Avenue Bismarck, ND.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 2,704 SF spa and wellness property built in 2019; 22,766 SF lot at 2525 Railroad Avenue, Unit 2; Medical spa layout with reception area and sauna rooms
