Residential Income
For Sale
$499,900
2729 Colfax Avenue S, Minneapolis, MN 55408
Property is zoned Residential-Multi-Family and includes storage space.
Property Size3,870 SF
Price / SF$193.76
Days on Market39
Property Features for 2729 Colfax Avenue S
General Information
Standard status
Active
Size
3,870 SF
Property subtype
Residential Income
Zoning
Residential-Multi-Family
Net Operating Income
$26,609
Taxes and HOA fees
Annual Taxes
$9,347
Amenities
Natural Gas
Full, Storage Space
Wood
Concrete, Garage Door Opener
Building Details
Building Size
3,870 SF
Year Built
1906
Stories
2
Listing Agency:
(612) 327-6240
Listed By:
Jonathan L Sells
(612) 327-6240
Source:
Evrealestate
Added: Jul 16
Changed: Aug 18
Last Checked: Aug 23 at 4:47AM
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 Jonathan L Sells
Investment Insights
Based on property information with market context.
Built in 1906, this residential income property is located at 2729 Colfax Avenue S in Minneapolis. The property carries Residential-Multi-Family zoning and includes natural gas service and storage space.
Exterior details include wood construction, concrete elements, and a garage door opener. The property is situated in Hennepin County, with access from Colfax Avenue S via 28th Street and Hennepin Avenue.
Exterior details include wood construction, concrete elements, and a garage door opener. The property is situated in Hennepin County, with access from Colfax Avenue S via 28th Street and Hennepin Avenue.
Key Highlights
- Residential‑Multi‑Family zoning
- Built in 1906
- Located at 2729 Colfax Avenue S, Minneapolis, MN 55408
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
$34,623
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
6.93%
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%
$692,460
$692.5K
Cap Rate 7%
$494,614
$494.6K
Cap Rate 9%
$384,700
$384.7K
Market Conditions
NOI Build-Up for 2,580 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
$67.2K $26.04/SF
− Vacancy
−$4.2K −$1.64/SF
EGI
$63.0K $24.40/SF
− OpEx
−$28.3K −$10.98/SF
NOI
$34.6K $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%
$692,460
Cap Rate 7%
$494,614
Cap Rate 9%
$384,700
Alternative Uses
Best Use
Apartment 5plus
$494.6K
$432.8K – $577.1K
NOI $34,623 @ 7.0% cap · market cap 6.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$615.5K
$538.6K – $718.1K
NOI $43,087 @ 7.0% cap · market cap 8.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,516
Businesses Nearby
Explore this area
Business Placement
Demographics for 55408, MN
33,718
Population
17,874
Households
1.9
Avg Household Size
30
Median Age
59%
College-Educated
91%
High-School Grad
2.7 sq mi
ZIP Area
12,488
Density / Sq Mi
$72,421
Median Household Income
$49,753
Median Earnings
$1,385
Median Rent
$387,500
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Residential income property - Property is zoned Residential-Multi-Family and includes storage space.
Where is this residential income property located?
The property is located at 2729 Colfax Avenue S Minneapolis, MN.
What is the asking price?
The asking price for this property is $499,900.
What are key features of this property?
This property features: Residential‑Multi‑Family zoning; Built in 1906; Located at 2729 Colfax Avenue S, Minneapolis, MN 55408
