Duplex with Unfinished
For Sale
$435,000
2538 Jefferson St NE, Minneapolis, MN 55418
Two-unit property includes updated electrical, a boiler upgrade, and basement expansion space.
Property Size1,554 SF
Price / SF$279.92
Days on Market12
Property Features for 2538 Jefferson St NE
General Information
Standard status
Active
Size
1,554 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
2
Building Details
Year Built
1916
Listing Agency:
eXp Realty
(651) 210-1038
Listed By:
Joseph P. Torkildson
Source:
Vibemn
Added: Aug 21
Changed: Aug 31
Last Checked: Aug 30 at 8:50PM
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 eXp Realty
Investment Insights
Based on property information with market context.
Built in 1916, this 1,554-square-foot duplex includes two residential units along with an unfinished attic in the upper unit. The basement contains a 3/4 bath and ceiling height suitable for additional finished space. Improvements include new electrical service throughout, an updated boiler, and structural work to the rear deck and patio.
A concrete parking pad is located behind the property, with the site identified for a future two-car garage. The property is at 2538 Jefferson St NE in Minneapolis’ Holland neighborhood, near breweries, coffee shops, art galleries, and parks in Northeast Minneapolis.
A concrete parking pad is located behind the property, with the site identified for a future two-car garage. The property is at 2538 Jefferson St NE in Minneapolis’ Holland neighborhood, near breweries, coffee shops, art galleries, and parks in Northeast Minneapolis.
Key Highlights
- Two‑unit duplex built in 1916
- 1,554 SF property with an unfinished upper‑level attic
- Basement includes a 3/4 bath and ceiling height for additional finished space
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
$22,705
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
5.22%
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%
$454,100
$454.1K
Cap Rate 7%
$324,357
$324.4K
Cap Rate 9%
$252,278
$252.3K
Market Conditions
NOI Build-Up for 1,554 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
$34.5K $22.20/SF
− Vacancy
−$2.1K −$1.33/SF
EGI
$32.4K $20.87/SF
− OpEx
−$9.7K −$6.26/SF
NOI
$22.7K $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%
$454,100
Cap Rate 7%
$324,357
Cap Rate 9%
$252,278
Alternative Uses
Best Use
Multifamily LT 5
$324.4K
$283.8K – $378.4K
NOI $22,705 @ 7.0% cap · market cap 5.22%
Second Best
Apartment 5plus
$297.9K
$260.7K – $347.6K
NOI $20,854 @ 7.0% cap · market cap 4.79%
Theoretical Best
Office A
$370.8K
$324.4K – $432.6K
NOI $25,953 @ 7.0% cap · market cap 5.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,011
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two-unit property includes updated electrical, a boiler upgrade, and basement expansion space.
Where is this duplex located?
The property is located at 2538 Jefferson St NE Minneapolis, MN.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: Two‑unit duplex built in 1916; 1,554 SF property with an unfinished upper‑level attic; Basement includes a 3/4 bath and ceiling height for additional finished space
