Nordic-Inspired Retail
For Sale
$250,000
303 Main St, Tower, MN 55790
Retail setting with Scandinavian-inspired interiors and home furnishings, rugs, decor, and gifts.
Property Size2,400 SF
Price / SF$104.17
Days on Market15
Property Features for 303 Main St
General Information
Standard status
Active
Size
2,400 SF
Additional Details
Business Included
Yes
Building Details
Year Built
1930
Listing Agency:
Vermilion Land Office, Inc.
(218) 780-1071
Listed By:
Sherry Anderson · License #40026207
Source:
Tayloronken
Added: Aug 16
Changed: Aug 29
Last Checked: Aug 29 at 11:45AM
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 Vermilion Land Office, Inc.
Investment Insights
Based on property information with market context.
This 2,400-square-foot retail property combines a 1930-built commercial structure with a Scandinavian-influenced interior presentation. The space has been used for home furnishings and gifts, including leather furniture, custom Nepali rugs, cabin-inspired decor, and related merchandise. Natural textures and clean-lined design elements shape the customer-facing environment.
The property is located at 303 Main St in Tower, Minnesota, along a state corridor serving traffic toward the Boundary Waters Canoe Area Wilderness. Tower is identified as a gateway to Lake Vermilion, bringing the property into a setting that serves both local residents and seasonal visitors. The sale opportunity also includes the option to acquire the operating brand and inventory separately.
The property is located at 303 Main St in Tower, Minnesota, along a state corridor serving traffic toward the Boundary Waters Canoe Area Wilderness. Tower is identified as a gateway to Lake Vermilion, bringing the property into a setting that serves both local residents and seasonal visitors. The sale opportunity also includes the option to acquire the operating brand and inventory separately.
Key Highlights
- 2,400‑square‑foot retail property at 303 Main St, Tower, MN 55790
- 1930‑built commercial property
- Scandinavian‑inspired interior design with natural textures and clean lines
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
$22,680
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
9.07%
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%
$453,600
$453.6K
Cap Rate 7%
$324,000
$324.0K
Cap Rate 9%
$252,000
$252.0K
Market Conditions
NOI Build-Up for 2,400 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
$36.0K $15.00/SF
− Vacancy
−$3.6K −$1.50/SF
EGI
$32.4K $13.50/SF
− OpEx
−$9.7K −$4.05/SF
NOI
$22.7K $9.45/SF
Area
St. Louis County, MN
Vacancy
10.00%
Lease Rate
$15.00 /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%
$453,600
Cap Rate 7%
$324,000
Cap Rate 9%
$252,000
Alternative Uses
Best Use
Retail
$324.0K
$283.5K – $378.0K
NOI $22,680 @ 7.0% cap · market cap 9.07%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$931.0K
$814.6K – $1.09M
NOI $65,170 @ 7.0% cap · market cap 26.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
100
Businesses Nearby
2k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Marathon Petroleum
Shops & Services
2,267 visits/mo
0.2 miles
Demographics for 55790, MN
1,876
Population
2,390
Households
0.8
Avg Household Size
57
Median Age
34%
College-Educated
97%
High-School Grad
143.6 sq mi
ZIP Area
13
Density / Sq Mi
$74,732
Median Household Income
$43,456
Median Earnings
$630
Median Rent
$297,900
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail setting with Scandinavian-inspired interiors and home furnishings, rugs, decor, and gifts.
Where is this retail space located?
The property is located at 303 Main St Tower, MN.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 2,400‑square‑foot retail property at 303 Main St, Tower, MN 55790; 1930‑built commercial property; Scandinavian‑inspired interior design with natural textures and clean lines
