Medical Office Building For
For Sale
$1,387,000
3880 Deegan Avenue, Monticello, MN 55362
10,555 SF medical office building near I-94.
Property Size10,555 SF
Lot Size1.67 Acres
Price / SF$131.41
Days on Market166
Property Features for 3880 Deegan Avenue
General Information
Standard status
Active
Size
10,555 SF
Class
B
Lot size
1.67 Acres
Property subtype
Office
Building Details
Building Size
10,555 SF
Year Built
2017
Listing Agency:
SVN GC Real Estate
(320) 420-6485
Listed By:
Kate Hanson, CCIM
Source:
Svn
Added: Mar 6
Changed: Aug 10
Last Checked: Aug 18 at 4:59AM
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 SVN GC Real Estate
Investment Insights
Based on property information with market context.
This 10,555 square foot medical office building is situated on a 1.67 acre lot. The property is located minutes from the I-94 interchange. Currently home to a dental clinic, the property offers 3,614 SF of turn-key space available for an owner-occupant. The building features a three-tenant layout. Positioned within a professional business park, the building has high visibility along Minnesota State Highway 25, with over 15,000 vehicles per day (AADT, 2024). The location provides convenient access for patients and visitors from surrounding communities such as Becker, Big Lake, and St. Michael. The single-story layout includes three suites and a common area lobby. Established co-tenants include Dentistry For Children and Central MN Orthodontics. Constructed in 2017, the building was designed for medical use. The zoning is B-4 – Regional Business District. Ample parking is available with 53 dedicated stalls for staff and visitors.
Key Highlights
- 10,555 SF medical office building with 3,614 SF of turn‑key space available for owner‑occupant.
- Excellent location minutes from I‑94 interchange and easy access to Minnesota Highway 25.
- High visibility on Minnesota State Highway 25 with over 15,000 vehicles per day.**
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
$125,339
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
9.04%
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%
$2,506,780
$2.5M
Cap Rate 7%
$1,790,557
$1.8M
Cap Rate 9%
$1,392,656
$1.4M
Market Conditions
NOI Build-Up for 10,555 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
$231.8K $21.96/SF
− Vacancy
−$64.7K −$6.13/SF
EGI
$167.1K $15.83/SF
− OpEx
−$41.8K −$3.96/SF
NOI
$125.3K $11.87/SF
Area
Wright County, MN
Vacancy
27.90%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
25.00%
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%
$2,506,780
Cap Rate 7%
$1,790,557
Cap Rate 9%
$1,392,656
Alternative Uses
Best Use
Healthcare Medical
$2.19M
$1.92M – $2.56M
NOI $153,368 @ 7.0% cap · market cap 11.06%
Second Best
Office B
$1.79M
$1.57M – $2.09M
NOI $125,339 @ 7.0% cap · market cap 9.04%
Theoretical Best
Office A
$2.52M
$2.20M – $2.94M
NOI $176,274 @ 7.0% cap · market cap 12.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
273
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55362, MN
20,476
Population
7,589
Households
2.7
Avg Household Size
36
Median Age
26%
College-Educated
91%
High-School Grad
65.3 sq mi
ZIP Area
314
Density / Sq Mi
$92,870
Median Household Income
$48,029
Median Earnings
$1,458
Median Rent
$324,400
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Monticello Pet Hospital — 4134 School Blvd, Monticello, MN 55362
- On Point Veterinary Services — 4134 School Blvd, Otsego, MN 55362
Frequently Asked Questions
What type of property is this?
Medical Office Space - 10,555 SF medical office building near I-94.
Where is this medical office space located?
The property is located at 3880 Deegan Avenue Monticello, MN.
What is the asking price?
The asking price for this property is $1,387,000.
What are key features of this property?
This property features: 10,555 SF medical office building with **3,614 SF of turn‑key space available for owner‑occupant.**; Excellent location minutes from I‑94 interchange and easy access to Minnesota Highway 25.; High visibility on Minnesota State Highway 25 with over 15,000 vehicles per day.**
