Full-Service Auto
For Sale
$499,900
306 Main St, Tower, MN 55790
Established towing and mechanical repair operation with shop equipment and a towing fleet included.
Property Size4,472 SF
Price / SF$111.78
Days on Market11
Property Features for 306 Main St
General Information
Standard status
Active
Size
4,472 SF
Additional Details
Business Included
Yes
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$3,053
Listing Agency:
Next Door Realty
(218) 410-5353
Listed By:
Norma Jean Jofs · License #40713911
(218) 780-2860
Source:
Exprealty
Added: Sep 14
Changed: Sep 20
Last Checked: Sep 22 at 6:34PM
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 Next Door Realty
Investment Insights
Based on property information with market context.
This 4,472-square-foot auto shop combines full-service mechanical repair with an established towing operation. The sale includes shop tools, equipment, and the towing fleet, providing a functioning service setup for a new owner or an operator seeking expansion. The property is located at 306 Main St in Tower, Minnesota.
The business sits along the roadway connecting Virginia, Ely, and Tower, serving a corridor described as heavily traveled between the three Iron Range communities. Its existing operation has served the area for years, with the property, equipment, and towing assets offered together.
The business sits along the roadway connecting Virginia, Ely, and Tower, serving a corridor described as heavily traveled between the three Iron Range communities. Its existing operation has served the area for years, with the property, equipment, and towing assets offered together.
Key Highlights
- 4,472‑square‑foot auto shop
- Full‑service mechanical repair operation
- Established towing business included
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
$42,260
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
8.45%
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%
$845,200
$845.2K
Cap Rate 7%
$603,714
$603.7K
Cap Rate 9%
$469,556
$469.6K
Market Conditions
NOI Build-Up for 4,472 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
$67.1K $15.00/SF
− Vacancy
−$6.7K −$1.50/SF
EGI
$60.4K $13.50/SF
− OpEx
−$18.1K −$4.05/SF
NOI
$42.3K $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%
$845,200
Cap Rate 7%
$603,714
Cap Rate 9%
$469,556
Alternative Uses
Best Use
Retail
$603.7K
$528.3K – $704.3K
NOI $42,260 @ 7.0% cap · market cap 8.45%
Second Best
Industrial
$252.7K
$221.1K – $294.8K
NOI $17,689 @ 7.0% cap · market cap 3.54%
Theoretical Best
Specialty Retail
$1.73M
$1.52M – $2.02M
NOI $121,433 @ 7.0% cap · market cap 24.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
100
Businesses Nearby
2k
Monthly Visits Nearby
Well-served
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Bob's Standard Service & 24 hour Towing — 306 Main St, Tower, MN 55790
Frequently Asked Questions
What type of property is this?
Auto shop - Established towing and mechanical repair operation with shop equipment and a towing fleet included.
Where is this auto shop located?
The property is located at 306 Main St Tower, 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: 4,472‑square‑foot auto shop; Full‑service mechanical repair operation; Established towing business included
