Renovated Duplex with Tandem
New
For Sale
$799,900
305-307 Reno Street, Wayzata, MN 55391
Two separate residences include individual laundry, with one unit updated throughout and the other offering scope for remaining improvements.
Property Size3,246 SF
Price / SF$246.43
Days on Market5
Property Features for 305-307 Reno Street
General Information
Standard status
Active
Size
3,246 SF
Property subtype
Multi-Family
Property Condition
Severity
Repairs Needed
Evidence
minor project completions
Additional Details
Multifamily Units
2
Amenities
laundry
Building Details
Year Built
1965
Buildings
1
Listing Agency:
Edina Realty, Inc
Listed By:
Michael Bartus
(952) 400-7000
Source:
Hometwincities
Added: Oct 1
Changed: Oct 4
Last Checked: Oct 4 at 8:49AM
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 Edina Realty, Inc
Investment Insights
Based on property information with market context.
This 3,246-square-foot duplex contains two units, each with its own laundry. Unit 307 has a new kitchen and baths, replacement windows, and refinished hardwood floors. Unit 205 has some project work remaining. Additional features include stainless steel appliances, granite, spiral staircases, newer water heaters, and a tandem garage providing 600 square feet for parking and storage. The 1965-built property also has a newly installed roof with a lifetime warranty.
The property is on Reno Street in Wayzata, within a 2–5 minute walk of downtown restaurants, the beach, and the dock.
The property is on Reno Street in Wayzata, within a 2–5 minute walk of downtown restaurants, the beach, and the dock.
Key Highlights
- Two‑unit duplex built in 1965
- Unit 307 renovated with new kitchen, baths, windows, and refinished hardwood floors
- Unit 205 has remaining project work
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
$42,065
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
5.26%
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%
$841,300
$841.3K
Cap Rate 7%
$600,929
$600.9K
Cap Rate 9%
$467,389
$467.4K
Market Conditions
NOI Build-Up for 3,246 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
$64.3K $19.80/SF
− Vacancy
−$4.2K −$1.29/SF
EGI
$60.1K $18.51/SF
− OpEx
−$18.0K −$5.55/SF
NOI
$42.1K $12.96/SF
Area
Hennepin County, MN
Vacancy
6.50%
Lease Rate
$19.80 /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%
$841,300
Cap Rate 7%
$600,929
Cap Rate 9%
$467,389
Alternative Uses
Best Use
Multifamily LT 5
$600.9K
$525.8K – $701.1K
NOI $42,065 @ 7.0% cap · market cap 5.26%
Second Best
Apartment 5plus
$542.0K
$474.3K – $632.3K
NOI $37,940 @ 7.0% cap · market cap 4.74%
Theoretical Best
Office A
$774.4K
$677.6K – $903.5K
NOI $54,210 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
895
Businesses Nearby
Explore this area
Business Placement
Demographics for 55391, MN
15,782
Population
7,445
Households
2.1
Avg Household Size
48
Median Age
72%
College-Educated
99%
High-School Grad
16.5 sq mi
ZIP Area
956
Density / Sq Mi
$170,115
Median Household Income
$72,262
Median Earnings
$1,498
Median Rent
$795,600
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 - Two separate residences include individual laundry, with one unit updated throughout and the other offering scope for remaining improvements.
Where is this duplex located?
The property is located at 305-307 Reno Street Wayzata, MN.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: Two‑unit duplex built in 1965; Unit 307 renovated with new kitchen, baths, windows, and refinished hardwood floors; Unit 205 has remaining project work
