Building Details

Year Built 1993

Units 5

Listing Agency: The Bridge Realty s***@gmail.com Show Phone

Listed By: Steven Pierce · License #MN

Source: Crexi

Added: Jun 17 Changed: Aug 7 Last Checked: Aug 10 at 10:10AM

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Investment Insights

Based on property information with market context.

This for-sale restaurant space is equipped with a full commercial kitchen and includes seating for 64 guests. Designed to support day-to-day food preparation and service, the layout is built around the operational needs of a restaurant.

Located at 2565 Seventh Ave E in North St Paul, Minnesota, the property offers a dedicated restaurant configuration within an approximate 2,150-square-foot footprint. The existing setup should allow a buyer to focus on front-of-house operations and culinary workflow rather than starting from scratch.

The combination of a full commercial kitchen and substantial seating makes the property a practical fit for restaurateurs looking for an operationally ready location, as well as investors and operators evaluating a turn-key food-service format. Interested parties should confirm any specific buildout details, equipment condition, and seating layout during due diligence to ensure the space aligns with their intended concept and staffing model.

Key Highlights

• Restaurant space built in 1993
• Full commercial kitchen included
• Seating for 64

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

$27,893

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

5.09%

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%

$557,860 $557.9K

Cap Rate 7%

$398,471 $398.5K

Cap Rate 9%

$309,922 $309.9K

Market Conditions

NOI Build-Up for 2,150 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

$38.7K $18.00/SF

− Vacancy

−$1.5K −$0.70/SF

EGI

$37.2K $17.30/SF

− OpEx

−$9.3K −$4.32/SF

NOI

$27.9K $12.97/SF

Area

Dakota County, MN

Vacancy

3.90%

Lease Rate

$18.00 /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%

$557,860

Cap Rate 7%

$398,471

Cap Rate 9%

$309,922

Alternative Uses

Best Use

Specialty Retail

$398.5K

$348.7K – $464.9K (±1% cap)

NOI $27,893 @ 7.0% cap · market cap 5.09%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$529.1K

$463.0K – $617.3K (±1% cap)

NOI $37,036 @ 7.0% cap · market cap 6.76%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Real Estate Agency Law Firm Restaurant Auto Parts Store Pharmacy Hair Salon

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

Location Intelligence

Trade Area within ½ mile

608

Businesses Nearby

12k

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Dining 87% Shops & Services 13%

Burger King Dining

9,605 visits/mo 0.5 miles

Old National Bank Shops & Services

1,130 visits/mo 0.4 miles

Domino's Pizza Dining

934 visits/mo 0.0 miles

Caliber Collision Shops & Services

422 visits/mo 0.4 miles

Demographics for 55109, MN

35,381

Population

13,376

Households

2.6

Avg Household Size

38

Median Age

31%

College-Educated

91%

High-School Grad

11.7 sq mi

ZIP Area

3,024

Density / Sq Mi

$81,759

Median Household Income

$44,609

Median Earnings

$1,316

Median Rent

$291,200

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - For sale restaurant space with a full commercial kitchen and seating for 64.

Where is this conventional restaurant located?

The property is located at 2565 SEVENTH AVE E North St Paul, MN.

What is the asking price?

The asking price for this property is $548,000.

What are key features of this property?

This property features: Restaurant space built in 1993; Full commercial kitchen included; Seating for 64