Class A Office Building
For Sale
Contact for pricing
2677 Bunker Lake Blvd NW, Andover, MN
Single tenant office building in a growing Minnesota community.
Property Size13,600 SF
Lot Size1.57 Acres
Price / SF$383.76
Days on Market565
Property Features for 2677 Bunker Lake Blvd NW
General Information
Standard status
Active
Size
13,600 SF
Lot size
1.57 Acres
Property subtype
OFFICE
Listing Agency:
Inventure Real Estate
(320) 291-8625
Listed By:
Jacob Cleveland · License #40670943
(320) 291-8625
Source:
Moodyscre
Added: Jan 31, 2025
Changed: Aug 8
Last Checked: Aug 19 at 9:08AM
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 Inventure Real Estate
Investment Insights
Based on property information with market context.
This Class A office building is located in Andover, Minnesota, with frontage on Bunker Lake Boulevard, which sees over 15,000 vehicles per day. The property is a single-tenant, state-of-the-art office building. Andover is located in Anoka County, which has been ranked as one of the top 10 fastest-growing counties in Minnesota since 2010. The property is suitable for the residential real estate business. The building has a property size of 13,600 square feet.
Key Highlights
- Single tenant, Class A office building.
- Located in Andover, Minnesota.
- Tenant is Re/Max Results, the largest/most productive Re/Max franchise in the U.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
$188,653
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
3.61%
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%
$3,773,060
$3.8M
Cap Rate 7%
$2,695,043
$2.7M
Cap Rate 9%
$2,096,144
$2.1M
Market Conditions
NOI Build-Up for 13,600 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
$339.5K $24.96/SF
− Vacancy
−$87.9K −$6.46/SF
EGI
$251.5K $18.50/SF
− OpEx
−$62.9K −$4.62/SF
NOI
$188.7K $13.87/SF
Area
Anoka County, MN
Vacancy
25.90%
Lease Rate
$24.96 /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%
$3,773,060
Cap Rate 7%
$2,695,043
Cap Rate 9%
$2,096,144
Alternative Uses
Best Use
Office B
$2.70M
$2.36M – $3.14M
NOI $188,653 @ 7.0% cap · market cap 3.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.78M
$3.31M – $4.41M
NOI $264,436 @ 7.0% cap · market cap 5.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
25
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Single tenant office building in a growing Minnesota community.
Where is this office building located?
The property is located at 2677 Bunker Lake Blvd NW Andover, MN.
What is the asking price?
The asking price for this property is $5,219,128.
What are key features of this property?
This property features: Single tenant, Class A office building.; Located in Andover, Minnesota.; Tenant is Re/Max Results, the largest/most productive Re/Max franchise in the U.S.
