Two Adjacent
For Sale
$424,900
3040 Fremont Ave S, Minneapolis, MN 55408
Updated multifamily property with one vacant unit, private outdoor space, laundry, storage, and dedicated parking.
Property Size1,632 SF
Price / SF$260.36
Days on Market12
Property Features for 3040 Fremont Ave S
General Information
Standard status
Active
Size
1,632 SF
Property subtype
Multi-Family
Occupancy
75%
Additional Details
Multifamily Units
4
Amenities
in-unit laundry
attic storage
private backyard
Building Details
Year Built
1900
Buildings
2
Tenancy
Multi
Listing Agency:
Keller Williams Premier Realty Lake Minnetonka
(952) 475-0111
Listed By:
Rick Brama
Source:
Thehomeadvantagegroup
Added: Aug 22
Changed: Aug 28
Last Checked: Sep 1 at 8:56PM
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 Keller Williams Premier Realty Lake Minnetonka
Investment Insights
Based on property information with market context.
This offering includes two neighboring duplex properties at 3040 Fremont Ave S and 3044 Fremont Ave S, totaling four residential units and 1,632 square feet. Three units are occupied, while the main-floor unit at 3040 Fremont is vacant. The available apartment provides approximately 800 square feet with two bedrooms and one bathroom, along with bright interiors, in-unit laundry, attic storage, a private backyard, and dedicated parking. The properties were built in 1900 and have been updated.
The duplexes are located in Minneapolis near Bde Maka Ska, cafes, restaurants, and entertainment venues. The surrounding neighborhood is described as highly walkable, with pet-friendly policies subject to limits. The configuration offers a combination of existing tenancy and an available unit within the four-unit total.
The duplexes are located in Minneapolis near Bde Maka Ska, cafes, restaurants, and entertainment venues. The surrounding neighborhood is described as highly walkable, with pet-friendly policies subject to limits. The configuration offers a combination of existing tenancy and an available unit within the four-unit total.
Key Highlights
- Two adjacent duplexes at 3040 Fremont Ave S and 3044 Fremont Ave S
- Four total units with 3 occupied and 1 vacant
- 1,632 square feet across the properties
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
$23,845
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
5.61%
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%
$476,900
$476.9K
Cap Rate 7%
$340,643
$340.6K
Cap Rate 9%
$264,944
$264.9K
Market Conditions
NOI Build-Up for 1,632 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
$36.2K $22.20/SF
− Vacancy
−$2.2K −$1.33/SF
EGI
$34.1K $20.87/SF
− OpEx
−$10.2K −$6.26/SF
NOI
$23.8K $14.61/SF
Area
Minneapolis, MN
Vacancy
5.98%
Lease Rate
$22.20 /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%
$476,900
Cap Rate 7%
$340,643
Cap Rate 9%
$264,944
Alternative Uses
Best Use
Multifamily LT 5
$340.6K
$298.1K – $397.4K
NOI $23,845 @ 7.0% cap · market cap 5.61%
Second Best
Apartment 5plus
$312.9K
$273.8K – $365.0K
NOI $21,901 @ 7.0% cap · market cap 5.15%
Theoretical Best
Office A
$389.4K
$340.7K – $454.3K
NOI $27,255 @ 7.0% cap · market cap 6.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
75%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,100
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
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Updated multifamily property with one vacant unit, private outdoor space, laundry, storage, and dedicated parking.
Where is this duplex located?
The property is located at 3040 Fremont Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $424,900.
What are key features of this property?
This property features: Two adjacent duplexes at 3040 Fremont Ave S and 3044 Fremont Ave S; Four total units with 3 occupied and 1 vacant; 1,632 square feet across the properties
