Building Details

Year Built 1999

Units 3

Tenancy Multi

Listing Agency: Upland Real Estate Group Inc

Listed By: Keith Sturm · License #MN 81883 Show Phone

Source: Crexi

Added: May 28 Changed: Aug 27 Last Checked: Sep 4 at 11:46PM

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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 Upland Real Estate Group Inc

Investment Insights

Based on property information with market context.

This property features two retail uses in one convenient shopping location, operating as an O’Reilly Auto Parts and a Dollar Tree. It’s a straightforward storefront-oriented setup suited to daily retail traffic and brand-driven tenants, supported by the presence of both an automotive-focused offering and a value retail offering.

The center is located off Highway 169 with strong visibility and reported traffic counts of 28,565 vehicles per day. The highway serves as a primary gateway connecting Minnesota’s central lakes region with the greater Twin Cities metropolitan area. Nearby retailers listed include Speedway, Dairy Queen, Caribou Coffee, Holiday, Subway, Hardee’s, and additional tenants.

For buyers and operators, the mix of auto parts and discount retail can appeal to investors seeking a multi-tenant arrangement with complementary customer draw, while providing retailers with a location designed for customers traveling the main corridor. For prospective tenants, the property’s highway access and visibility offer practical exposure for brands that rely on drive-by and convenience-oriented shopping patterns.

Key Highlights

• Off Highway 169 with traffic counts of 28,565 vehicles per day
• O’Reilly Auto Parts and Dollar Tree retail property built in 1999
• Located near retailers including Speedway, Dairy Queen, Caribou Coffee, Holiday, Subway, and Hardee’s

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

$190,978

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

5.79%

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%

$3,819,560 $3.8M

Cap Rate 7%

$2,728,257 $2.7M

Cap Rate 9%

$2,121,978 $2.1M

Market Conditions

NOI Build-Up for 15,506 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

$294.0K $18.96/SF

− Vacancy

−$21.2K −$1.37/SF

EGI

$272.8K $17.59/SF

− OpEx

−$81.8K −$5.28/SF

NOI

$191.0K $12.32/SF

Area

Sherburne County, MN

Vacancy

7.20%

Lease Rate

$18.96 /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%

$3,819,560

Cap Rate 7%

$2,728,257

Cap Rate 9%

$2,121,978

Alternative Uses

Best Use

Retail

$2.73M

$2.39M – $3.18M (±1% cap)

NOI $190,978 @ 7.0% cap · market cap 5.79%

Second Best

Industrial

$2.41M

$2.11M – $2.81M (±1% cap)

NOI $168,453 @ 7.0% cap · market cap 5.11%

Theoretical Best

Office A

$3.70M

$3.24M – $4.32M (±1% cap)

NOI $258,959 @ 7.0% cap · market cap 7.85%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Anoshirvan Mazhari, MD Physician O'Reilly auto parts Auto Parts Store Dollar Store Department Store Dr. Sujatha Roberts, ... Physician Emily Luitjens Pediatrician

Suggested Use

Top Pick Building Supply Dental Office Big Box & Wholesale Store Law Firm Parking Lot & Garage Pharmacy

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

28,565 VPD

Traffic count

Turnkey business

Opportunity

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

305

Businesses Nearby

60k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 72% Dining 28%

Speedway Shops & Services

24,438 visits/mo 0.2 miles

Hardee's Dining

9,413 visits/mo 0.2 miles

Holiday Station Store Shops & Services

8,538 visits/mo 0.2 miles

Dollar Tree Shops & Services

6,032 visits/mo 0.1 miles

Caribou Coffee Dining

4,355 visits/mo 0.5 miles

Demographics for 55398, MN

17,022

Population

6,292

Households

2.7

Avg Household Size

37

Median Age

24%

College-Educated

95%

High-School Grad

73.1 sq mi

ZIP Area

233

Density / Sq Mi

$105,063

Median Household Income

$49,832

Median Earnings

$1,201

Median Rent

$325,000

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

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this auto shops located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Auto shop - Conveniently located off Highway 169 with strong visibility for established auto parts and discount retail tenants.

Where is this auto shop located?

The property is located at 25945 GATEWAY DR Zimmerman, MN.

What is the asking price?

The asking price for this property is $3,297,984.

What are key features of this property?

This property features: Off Highway 169 with traffic counts of 28,565 vehicles per day; O’Reilly Auto Parts and Dollar Tree retail property built in 1999; Located near retailers including Speedway, Dairy Queen, Caribou Coffee, Holiday, Subway, and Hardee’s