33-Unit Apartment
For Sale
Contact for pricing
2631 Columbus Avenue South, Minneapolis, MN 55407
Stabilized 33-unit multifamily community with large one-bedroom apartments, remodeled units, and a new roof installed June 2026.
Property Size24,678 SF
Price / SF$158.04
Days on Market64
Property Features for 2631 Columbus Avenue South
General Information
Standard status
Active
Size
24,678 SF
Class
C
Total Parking Spaces
24
Property subtype
Multifamily
Occupancy
97%
Additional Details
Multifamily Units
33
Building Details
Year Built
1972
Year Renovated
2020
Buildings
1
Stories
3
Units
33
Listing Agency:
MRG Realty Partners
Listed By:
Doug McNicoll · License #40492260
(651) 900-4386
Source:
Crexi
Added: Jul 8
Changed: Sep 7
Last Checked: Sep 8 at 8:25AM
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 MRG Realty Partners
Investment Insights
Based on property information with market context.
This stabilized 33-unit apartment community features all large one-bedroom units. The property benefits from a RUBS program in place, providing for ownership to recover a portion of utility expenses. According to the seller, a majority of units have been remodeled, and major capital improvements have been completed, including a brand new roof installed in June 2026.
The community is located in a Minneapolis healthcare corridor and is described as having a large rear lot, which the seller notes may support increased parking income. The remarks also indicate potential 4D tax savings and opportunities for storage income.
Overall, the property is positioned as an operational apartment community with prior renovations and a recent roof replacement, alongside additional stated opportunities tied to parking, storage, and tax considerations.
The community is located in a Minneapolis healthcare corridor and is described as having a large rear lot, which the seller notes may support increased parking income. The remarks also indicate potential 4D tax savings and opportunities for storage income.
Overall, the property is positioned as an operational apartment community with prior renovations and a recent roof replacement, alongside additional stated opportunities tied to parking, storage, and tax considerations.
Key Highlights
- 33‑unit multifamily community made up entirely of large one‑bedroom apartments
- Year built 1972
- RUBS program in place to help owners recover a portion of utility expenses
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
$331,172
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
8.49%
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%
$6,623,440
$6.6M
Cap Rate 7%
$4,731,029
$4.7M
Cap Rate 9%
$3,679,689
$3.7M
Market Conditions
NOI Build-Up for 24,678 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
$642.6K $26.04/SF
− Vacancy
−$40.5K −$1.64/SF
EGI
$602.1K $24.40/SF
− OpEx
−$271.0K −$10.98/SF
NOI
$331.2K $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%
$6,623,440
Cap Rate 7%
$4,731,029
Cap Rate 9%
$3,679,689
Alternative Uses
Best Use
Apartment 5plus
$4.73M
$4.14M – $5.52M
NOI $331,172 @ 7.0% cap · market cap 8.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.89M
$5.15M – $6.87M
NOI $412,136 @ 7.0% cap · market cap 10.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
33
Residential units
Location Intelligence
Trade Area within ½ mile
4,696
Businesses Nearby
Explore this area
Business Placement
Demographics for 55407, MN
38,506
Population
15,979
Households
2.4
Avg Household Size
34
Median Age
48%
College-Educated
85%
High-School Grad
4.0 sq mi
ZIP Area
9,627
Density / Sq Mi
$78,206
Median Household Income
$46,388
Median Earnings
$1,219
Median Rent
$317,000
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?
Apartment building - Stabilized 33-unit multifamily community with large one-bedroom apartments, remodeled units, and a new roof installed June 2026.
Where is this apartment building located?
The property is located at 2631 Columbus Avenue South Minneapolis, MN.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: 33‑unit multifamily community made up entirely of large one‑bedroom apartments; Year built 1972; RUBS program in place to help owners recover a portion of utility expenses
