11-Unit Multifamily
For Sale
Contact for pricing
3545 12th Ave S, Minneapolis, MN 55407
An 11-unit multifamily property with a new parking lot, newer boiler and water heaters, plus 4D tax program eligibility.
Property Size3,283 SF
Price / SF$388.36
Days on Market64
Property Features for 3545 12th Ave S
General Information
Standard status
Active
Size
3,283 SF
Property subtype
Multifamily
Occupancy
90%
Investment Type
Value Add
Net Operating Income
$100,377
Building Details
Year Built
1962
Year Renovated
2025
Buildings
1
Units
11
Tenancy
Multi
Listing Agency:
Commercial Investors Group
(612) 598-0780
Listed By:
Mike Sowers · License #40571176
Source:
Crexi
Added: Jun 10
Changed: Aug 10
Last Checked: Aug 12 at 5:16AM
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 Commercial Investors Group
Investment Insights
Based on property information with market context.
This 11-unit multifamily property offers an income-producing residential setup with recent mechanical and capital improvements. In 2025, the property received a new parking lot, and upgrades also include a newer boiler and water heaters. Some units have been turned, and the building participates in the Minneapolis 4D program, which keeps taxes low. Additional updates include new appliances provided through energy updates completed in 2026.
The asset is located in the Corcoran neighborhood on Minneapolis’s south side. The public remarks also note strong transit connectivity in the surrounding area.
For buyers looking for a south Minneapolis multifamily addition, the combination of an updated parking lot, newer major systems, and energy-related appliance improvements supports ongoing day-to-day operation. Participation in the Minneapolis 4D program may help reduce tax exposure, while the property’s unit turns and renovation history can be relevant for maintaining rental readiness across multiple renter profiles.
The asset is located in the Corcoran neighborhood on Minneapolis’s south side. The public remarks also note strong transit connectivity in the surrounding area.
For buyers looking for a south Minneapolis multifamily addition, the combination of an updated parking lot, newer major systems, and energy-related appliance improvements supports ongoing day-to-day operation. Participation in the Minneapolis 4D program may help reduce tax exposure, while the property’s unit turns and renovation history can be relevant for maintaining rental readiness across multiple renter profiles.
Key Highlights
- 11‑unit multifamily property built in 1962 in Minneapolis’ Corcoran neighborhood (south side).
- New parking lot completed in 2025.
- Major upgrades include a newer boiler and newer water heaters.
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
$44,057
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
3.46%
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%
$881,140
$881.1K
Cap Rate 7%
$629,386
$629.4K
Cap Rate 9%
$489,522
$489.5K
Market Conditions
NOI Build-Up for 3,283 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
$85.5K $26.04/SF
− Vacancy
−$5.4K −$1.64/SF
EGI
$80.1K $24.40/SF
− OpEx
−$36.0K −$10.98/SF
NOI
$44.1K $13.42/SF
Area
Minneapolis, MN
Vacancy
6.30%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
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%
$881,140
Cap Rate 7%
$629,386
Cap Rate 9%
$489,522
Alternative Uses
Best Use
Apartment 5plus
$629.4K
$550.7K – $734.3K
NOI $44,057 @ 7.0% cap · market cap 3.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$783.3K
$685.4K – $913.8K
NOI $54,828 @ 7.0% cap · market cap 4.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
870
Businesses Nearby
Explore this area
Business Placement
Demographics for 55407, MN
38,506
Population
15,979
Households
2.4
Avg Household Size
34
Median Age
48%
College-Educated
85%
High-School Grad
4.0 sq mi
ZIP Area
9,627
Density / Sq Mi
$78,206
Median Household Income
$46,388
Median Earnings
$1,219
Median Rent
$317,000
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?
Apartment building - An 11-unit multifamily property with a new parking lot, newer boiler and water heaters, plus 4D tax program eligibility.
Where is this apartment building located?
The property is located at 3545 12th Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $1,275,000.
What are key features of this property?
This property features: 11‑unit multifamily property built in 1962 in Minneapolis’ Corcoran neighborhood (south side).; New parking lot completed in 2025.; Major upgrades include a newer boiler and newer water heaters.
