Building Details

Year Built 1963

Listing Agency: Bridge Realty, LLC Show Phone

Listed By: Michael Bartus Show Phone

Source: Hometwincities

Added: Aug 17 Changed: Aug 29 Last Checked: Aug 26 at 12:40PM

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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 Bridge Realty, LLC

Investment Insights

Based on property information with market context.

This 1963 duplex contains two independent living spaces suited to an owner-occupant arrangement or multifamily investment. The east unit includes three upper-level bedrooms and a fourth egress bedroom or flexible lower-level space. The west unit has two upper-level bedrooms plus a third egress bedroom downstairs. Both residences feature updated kitchens and bathrooms with custom cabinetry, along with separate utility meters and electric baseboard heat.

Property improvements include a new driveway, windows, interior and exterior paint, plumbing and fixtures, insulation, appliances, A/C units, gutters, and tree maintenance. Additional features include large garages, fenced yards, substantial storage, and basement areas with room to expand. The property is located in Shorewood within the Minnetonka School District and near Minnewashta Elementary at 25640 Wild Rose Lane.

Key Highlights

• Two‑unit duplex with separate living spaces and utility meters
• East unit includes 3 upper‑level bedrooms plus a 4th egress bedroom or flexible lower‑level space
• West unit offers 2 upper‑level bedrooms and a 3rd egress bedroom downstairs

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

$42,972

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

6.27%

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%

$859,440 $859.4K

Cap Rate 7%

$613,886 $613.9K

Cap Rate 9%

$477,467 $477.5K

Market Conditions

NOI Build-Up for 3,316 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

$65.7K $19.80/SF

− Vacancy

−$4.3K −$1.29/SF

EGI

$61.4K $18.51/SF

− OpEx

−$18.4K −$5.55/SF

NOI

$43.0K $12.96/SF

Area

Hennepin County, MN

Vacancy

6.50%

Lease Rate

$19.80 /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%

$859,440

Cap Rate 7%

$613,886

Cap Rate 9%

$477,467

Alternative Uses

Best Use

Multifamily LT 5

$613.9K

$537.2K – $716.2K (±1% cap)

NOI $42,972 @ 7.0% cap · market cap 6.27%

Second Best

Apartment 5plus

$553.7K

$484.5K – $646.0K (±1% cap)

NOI $38,759 @ 7.0% cap · market cap 5.66%

Theoretical Best

Office A

$791.1K

$692.2K – $923.0K (±1% cap)

NOI $55,379 @ 7.0% cap · market cap 8.08%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Auto Repair Shop Restaurant Real Estate Agency Building Supply Hair Salon HVAC Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

2

Residential units

Location Intelligence

Trade Area within ½ mile

62

Businesses Nearby

Explore this area Business Placement

Demographics for 55331, MN

19,568

Population

8,275

Households

2.4

Avg Household Size

46

Median Age

71%

College-Educated

99%

High-School Grad

16.3 sq mi

ZIP Area

1,200

Density / Sq Mi

$160,029

Median Household Income

$75,771

Median Earnings

$1,208

Median Rent

$707,000

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

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Frequently Asked Questions

What type of property is this?

Duplex - Two distinct units offer updated kitchens and baths, separate utility meters, garages, and fenced yards.

Where is this duplex located?

The property is located at 25640 Wild Rose Lane Shorewood, MN.

What is the asking price?

The asking price for this property is $685,000.

What are key features of this property?

This property features: Two‑unit duplex with separate living spaces and utility meters; East unit includes 3 upper‑level bedrooms plus a 4th egress bedroom or flexible lower‑level space; West unit offers 2 upper‑level bedrooms and a 3rd egress bedroom downstairs