Medical Treatment Center
For Sale
Contact for pricing
3329 University Avenue Southeast, Minneapolis, MN 55414
Three NNN medical treatment centers with long operating history as opioid and behavioral health programs.
Property Size12,270 SF
Price / SF$210.32
Days on Market86
Property Features for 3329 University Avenue Southeast
General Information
Standard status
Active
Size
12,270 SF
Property subtype
Office, Retail
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$180,645
Building Details
Year Built
1958
Year Renovated
2012
Stories
2
Tenancy
Single
Listing Agency:
Upland Real Estate Group Inc
(612) 376-4475
Listed By:
Keith Sturm · License #MN 81883
Source:
Crexi
Added: May 28
Changed: Aug 8
Last Checked: Aug 17 at 5:27PM
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 Upland Real Estate Group Inc
Investment Insights
Based on property information with market context.
This offering is a portfolio of three medical treatment centers in Minnesota, operated as either Opiate Treatment Centers or Behavioral Health Centers for approximately 20 to 50 years. The properties are structured as NNN leases and are described as outpatient-only for this location, with annual rent increases ranging from 2.75% to 5.00%. The lease terms also reference that the remainder of CPI increase is carried forward indefinitely.
The public remarks highlight that receiving zoning approval for behavioral health centers can be extremely challenging, which can be a meaningful factor when evaluating lease durability in this use category. The portfolio’s tenancy includes Behavioral Health Group, which has a lease signed by BHG with a guaranty by BHG Holdings LLC (described as having 115 locations in 21 states). Cedar Ridge and Twin Town are described as having a guaranty by EOSIS (formerly Meridian Behavioral Health Group), which is noted as operating 21 locations, with Renovus Capital identified as the purchaser of EOSIS in October 2023.
For buyers or operators focused on healthcare real estate with NNN lease structures, this portfolio presents three long-tenured medical treatment facilities tied to opioid and behavioral health use. The remarks also emphasize the role of zoning barriers in the behavioral health approvals process and the presence of guaranty backing from related networks.
The public remarks highlight that receiving zoning approval for behavioral health centers can be extremely challenging, which can be a meaningful factor when evaluating lease durability in this use category. The portfolio’s tenancy includes Behavioral Health Group, which has a lease signed by BHG with a guaranty by BHG Holdings LLC (described as having 115 locations in 21 states). Cedar Ridge and Twin Town are described as having a guaranty by EOSIS (formerly Meridian Behavioral Health Group), which is noted as operating 21 locations, with Renovus Capital identified as the purchaser of EOSIS in October 2023.
For buyers or operators focused on healthcare real estate with NNN lease structures, this portfolio presents three long-tenured medical treatment facilities tied to opioid and behavioral health use. The remarks also emphasize the role of zoning barriers in the behavioral health approvals process and the presence of guaranty backing from related networks.
Key Highlights
- Portfolio of three Minnesota medical treatment centers with NNN leases.
- Annual rent increases range from 2.75% to 5.00%, with CPI increase carried forward indefinitely.
- Long operating history as Opiate Treatment Centers or Behavioral Health Centers, with operations reported for 20 to 50 years.
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
$159,019
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
6.16%
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%
$3,180,380
$3.2M
Cap Rate 7%
$2,271,700
$2.3M
Cap Rate 9%
$1,766,878
$1.8M
Market Conditions
NOI Build-Up for 12,270 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
$294.5K $24.00/SF
− Vacancy
−$29.4K −$2.40/SF
EGI
$265.0K $21.60/SF
− OpEx
−$106.0K −$8.64/SF
NOI
$159.0K $12.96/SF
Area
Minneapolis, MN
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
40.00%
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%
$3,180,380
Cap Rate 7%
$2,271,700
Cap Rate 9%
$1,766,878
Alternative Uses
Best Use
Healthcare Medical
$2.27M
$1.99M – $2.65M
NOI $159,019 @ 7.0% cap · market cap 6.16%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.93M
$2.56M – $3.42M
NOI $204,916 @ 7.0% cap · market cap 7.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,626
Businesses Nearby
Explore this area
Business Placement
Demographics for 55414, MN
36,600
Population
15,541
Households
2.4
Avg Household Size
26
Median Age
68%
College-Educated
93%
High-School Grad
3.1 sq mi
ZIP Area
11,806
Density / Sq Mi
$47,004
Median Household Income
$18,386
Median Earnings
$1,368
Median Rent
$454,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Three NNN medical treatment centers with long operating history as opioid and behavioral health programs.
Where is this medical center located?
The property is located at 3329 University Avenue Southeast Minneapolis, MN.
What is the asking price?
The asking price for this property is $2,580,650.
What are key features of this property?
This property features: Portfolio of three Minnesota medical treatment centers with NNN leases.; Annual rent increases range from 2.75% to 5.00%, with CPI increase carried forward indefinitely.; Long operating history as Opiate Treatment Centers or Behavioral Health Centers, with operations reported for 20 to 50 years.
