Fully Leased Brick
New
For Sale
$499,900
2541 3rd Avenue S, Minneapolis, MN 55404
Two three-bedroom units are leased through 2027, with residents separately responsible for gas and electric.
Property Size3,260 SF
Lot Size0.15 Acres
Price / SF$153.34
Days on Market6
Property Features for 2541 3rd Avenue S
General Information
Standard status
Active
Size
3,260 SF
Total Parking Spaces
2
Lot size
0.15 Acres
Property subtype
Multi-Family
Occupancy
100%
Units
Unit Mix
1 x 3BR/1BA, 1 x 3BR/2BA
Multifamily Units
2
Additional Details
Gross Income
$50,880
Amenities
original woodwork
hardwood floors
clawfoot tub
fireplaces
covered front porch
updated kitchens
newer windows
boiler heat
full unfinished basement
common laundry
abundant storage
Building Details
Year Built
1900
Buildings
1
Stories
3
Construction
Brick
Tenancy
Multi
Listing Agency:
Twin Cities Leasing LLC
Listed By:
James Humphrey · License #NST502048141
Source:
Winhometeam
Added: Sep 22
Last Checked: Sep 26 at 4:19AM
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 Twin Cities Leasing LLC
Investment Insights
Based on property information with market context.
This 3,260 finished sq ft duplex occupies a 50x128 lot and dates to 1900. The brick property contains two three-bedroom residences with distinct entrances and expansive layouts. One unit includes the front portion of the main level and the full second floor, while the other occupies the rear of the main level and the entire third floor. Interior features include original woodwork, hardwood flooring, two fireplaces, a clawfoot tub, updated kitchens, newer windows, and a broad covered porch.
A full unfinished basement provides common laundry and substantial storage, and the property includes a 2-car detached garage. Boiler heat serves the building. Both residences are leased through 2027, with tenants paying their own gas and electric. The property is across from the Minneapolis Institute of Art and MCAD, with access to Eat Street, downtown Minneapolis, and I-35W within minutes.
A basement conversion to a third unit has been conceptually explored, but the plan is not city-approved. Buyers should verify all measurements.
A full unfinished basement provides common laundry and substantial storage, and the property includes a 2-car detached garage. Boiler heat serves the building. Both residences are leased through 2027, with tenants paying their own gas and electric. The property is across from the Minneapolis Institute of Art and MCAD, with access to Eat Street, downtown Minneapolis, and I-35W within minutes.
A basement conversion to a third unit has been conceptually explored, but the plan is not city-approved. Buyers should verify all measurements.
Key Highlights
- Two 3‑bedroom units leased through 2027
- 3,260 finished sq ft on a 50x128 lot
- 1900 brick construction with original woodwork and hardwood floors
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
$43,748
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
8.75%
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%
$874,960
$875.0K
Cap Rate 7%
$624,971
$625.0K
Cap Rate 9%
$486,089
$486.1K
Market Conditions
NOI Build-Up for 3,260 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
$84.9K $26.04/SF
− Vacancy
−$5.3K −$1.64/SF
EGI
$79.5K $24.40/SF
− OpEx
−$35.8K −$10.98/SF
NOI
$43.7K $13.42/SF
Area
Minneapolis, MN
Vacancy
6.30%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
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%
$874,960
Cap Rate 7%
$624,971
Cap Rate 9%
$486,089
Alternative Uses
Best Use
Multifamily LT 5
$680.4K
$595.4K – $793.9K
NOI $47,631 @ 7.0% cap · market cap 9.53%
Second Best
Apartment 5plus
$625.0K
$546.9K – $729.1K
NOI $43,748 @ 7.0% cap · market cap 8.75%
Theoretical Best
Office A
$777.8K
$680.6K – $907.4K
NOI $54,444 @ 7.0% cap · market cap 10.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
5,520
Businesses Nearby
Explore this area
Business Placement
Demographics for 55404, MN
29,322
Population
14,372
Households
2
Avg Household Size
32
Median Age
35%
College-Educated
81%
High-School Grad
1.8 sq mi
ZIP Area
16,290
Density / Sq Mi
$43,932
Median Household Income
$35,970
Median Earnings
$1,063
Median Rent
$294,200
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Two three-bedroom units are leased through 2027, with residents separately responsible for gas and electric.
Where is this duplex located?
The property is located at 2541 3rd Avenue S Minneapolis, MN.
What is the asking price?
The asking price for this property is $499,900.
What are key features of this property?
This property features: Two 3‑bedroom units leased through 2027; 3,260 finished sq ft on a 50x128 lot; 1900 brick construction with original woodwork and hardwood floors
