Add Listing
    For Sale
    • For Sale
    • For Lease
    • Recently Sold
    • Property Lookup
    • Brokers
    Established Business with Interstate Access Title is generated by Realmo AI

    26986 125th Street, Dalton, MN 56324

    View on Map
    Claim this Listing
    For Sale
    $995,000

    Commercial - Dalton, MN

    Property size:
    7,948 SF
    Lot size:
    5.03 Acres
    Price / SF:
    $125/SF
    Added:
    Feb 2, 2026
    Days on Market:
    114
    Last Refresh:
    May 27 at 7:06 pm

    Property Features for 26986 125th Street

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Zoning
    Business/Commercial
    Parking features
    Parking Lot
    Exterior features
    Metal
    Standard status
    Active
    APN
    60000230210002
    Size
    7,948 SF
    Lot size
    5.03 Acres

    Taxes and HOA fees

    Tax Year
    2025
    Tax Annual Amount
    2736

    Utilities

    Heating system
    Forced Air
    Cooling system
    Central Air

    Building Details

    Year built
    1999
    Flooring type
    Concrete
    Building materials
    Concrete
    Roof type
    Metal
    Architectural style
    Other

    We can help!

    Listing Contact
    Logan Sonmor

    Listing agent Logan Sonmor

    Listing office Andrew Yaggie Real Estate 1918 College Way, Fergus Falls, MN

    Listing date Feb 2, 2026

    MLS# 7015794 Listing URL

    Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    HighLights

    • High‑visibility location with direct access to Interstate 94 at the Dalton exit.
    • Established business with diverse revenue streams: manufacturing docks/boat lifts, retail sales of recognized brands, and full‑service small engine repair.
    • Includes ownership of an interstate advertising sign, providing long‑term branding and exposure.
    • Substantial building space: approximately 4,900 sq ft of shop space and 3,048 sq ft of retail/office/parts space, plus additional storage buildings.
    • Property size of approximately five acres, offering ample room for business expansion.
    • Opportunity for a smooth transition with current owners willing to provide assistance.

    Overview

    This well-established business is located in west-central Minnesota, in the heart of the lakes region. The property is ideally situated on a frontage road with direct access from Interstate 94 at the Dalton exit, offering exceptional visibility and easy access. Thousands of vehicles pass by the location daily. The business owns its interstate advertising sign, providing long-term branding value and exposure to I-94 traffic. The operation includes the manufacturing of lake docks and boat lifts, along with a retail division featuring brands such as Cub Cadet, Stihl, Kohler, DeWalt, and Briggs & Stratton. The business is known for its full-service small-engine repair department, servicing lawn mowers, chainsaws, trimmers, ATVs, UTVs, and boat motors. An extensive parts inventory supports both retail and service operations. The property includes approximately 4,900 square feet of shop space and 3,048 square feet of retail, office, and parts space, along with additional storage buildings. Additional revenue streams include boat and pontoon winterization, shrink-wrapping services, and secure outdoor winter storage. Seasonal inventory features Cub Cadet mowers and snowblowers, as well as Stihl chainsaws and related equipment. Situated on approximately 5.03 acres, the property offers room for expansion or the opportunity to purchase the location for other business needs. The current owners are willing to assist a new buyer to ensure a smooth transition. The property is zoned for Business/Commercial use.

    Financial Insights

    Value Estimation Calculated for Retail

    Conservative
    $750.7K
    NOI $67,564 @ 9.00% cap · cautious / downside scenario
    Moderate
    $965.2K
    NOI $67,564 @ 7.00% cap · market / base-case scenario
    Aggressive
    $1.35M
    NOI $67,564 @ 5.00% cap · optimistic / upside scenario

    NOI & Cap Rate Calculator

    NOI Build-Up
    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.
         Calculated for Retail

    Component $ $/SF
    Gross rent $104.9k $13.20
    − Vacancy −$8.4k −$1.06
    EGI $96.5k $12.14
    − OpEx −$29.0k −$3.64
    NOI $67.6k $8.50
    7,948 SF · lease $13.20/SF/yr · vacancy 8.00% · expense 30.00%

    Alternative Use Scenarios

    Best Use
    Retail
    $965.2K
    $844.6K – $1.13M (±1% cap)
    NOI $67,564 @ 7.0% cap · market cap 6.79%
    Second Best
    Industrial
    $877.0K
    $767.4K – $1.02M (±1% cap)
    NOI $61,393 @ 7.0% cap · market cap 6.17%
    Theoretical Best
    Office A
    $1.73M
    $1.51M – $2.01M (±1% cap)
    NOI $120,860 @ 7.0% cap · market cap 12.15%
    Zoning and permitted uses should be independently verified with local authorities.
    Property Profile Location Intelligence

    Current Use by Public Records

    Dalton Sports & Repair Auto Repair Shop

    Suggested Use

    Spa & Massage Center Auto Repair Shop Hotel & Motel Parking Lot & Garage

    Zoning and permitted uses should be independently verified with local authorities.

    Similar Places Nearby

    • Dalton Sports & Repair — 26986 125th St, Dalton, MN 56324

    Location Insight

    • Map
    • Local Demand
    City
    Dalton
    County
    Otter Tail
    State
    Minnesota
    Longitude
    -95.9295309
    Latitude
    46.1443785

    FAQs

    What type of property is this?
    Auto shop - Well-regarded business on 5 acres with high visibility.
    Where is this auto shop located?
    The property is located at 26986 125th Street Dalton, MN.
    What is the asking price?
    The asking price for this property is $995,000.
    What are key features of this property?
    This property features: High‑visibility location with direct access to Interstate 94 at the Dalton exit.; Established business with diverse revenue streams: manufacturing docks/boat lifts, retail sales of recognized brands, and full‑service small engine repair.; Includes ownership of an interstate advertising sign, providing long‑term branding and exposure.
    (218) 205-0436
    We can help!
    Listing Contact
    Logan Sonmor
    Request Owner's contact information
    Message sent successfully
    Error
    If you are the owner or broker of this property and would like to edit or remove this listing please send a message to web site administrator.
    Message sent successfully
    Error
    Email to Your Friends
    Link copied to clipboard
    Separate multiple addresses with a comma
    Message sent successfully
    Error

    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    Thanks! Your message was sent.
    Error! Your message wasn't sent.
    Please enter your name
    Please enter email
    Please enter the email in the correct format
    Please enter phone
    Please enter the number in the correct format
    Please enter message
    Thank You

    You are Unsubscribed From Notifications

    Thank You for Inquiry
    26986 125th Street, Dalton, MN 56324
    letter with green check mark
    Check your email
    We sent you the
    agent's contact details. yellow underline
    Can't find it?
    Please check your junk/spam folder.
    Google sign-in failed. Please try again or use another login method.
    Sign Up Successful!
    You now have access to more from Realmo!