Refrigerated Cold Storage
For Sale
$12,500,000
404 S Lasalle St, Spencer, WI 54479
Two-tenant net-lease property with refrigerated storage, office space, and a maintenance shop.
Property Size110,500 SF
Days on Market66
Property Features for 404 S Lasalle St
General Information
Standard status
Active
Size
110,500 SF
Property subtype
Industrial
Building Details
Building Size
110,500 SF
Listing Agency:
Results Commercial
(651) 755-2068
Listed By:
Mark Hulsey · License #40169559
Source:
Resultscommercial
Added: Jun 25
Changed: Aug 29
Last Checked: Aug 29 at 1:51PM
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 Results Commercial
Investment Insights
Based on property information with market context.
Located at 404 S Lasalle St in Spencer, Wisconsin, this refrigerated cold storage property spans 8.88 acres and includes 111,600 SF of improvements. The site contains a cold storage building completed in 2022, office space, and a maintenance shop. Eight dock loading doors serve the fully sprinklered buildings, while ground-mounted refrigeration equipment is compatible with eight compressor and condenser systems.
The property is leased to two occupants under NN lease arrangements, including a leading US food manufacturer that has occupied the site for more than 30 years and an owner/operator using dry storage space. A longer-term lease includes two renewal options. The food manufacturer’s factory is located immediately across the alley. The property is zoned Industrial, with up to 60,000 SF available for additional construction. Roof, siding, and refrigeration systems are identified as landlord responsibilities and are described as being in excellent condition. The entrance and yard were blacktopped in 2022.
The property is leased to two occupants under NN lease arrangements, including a leading US food manufacturer that has occupied the site for more than 30 years and an owner/operator using dry storage space. A longer-term lease includes two renewal options. The food manufacturer’s factory is located immediately across the alley. The property is zoned Industrial, with up to 60,000 SF available for additional construction. Roof, siding, and refrigeration systems are identified as landlord responsibilities and are described as being in excellent condition. The entrance and yard were blacktopped in 2022.
Key Highlights
- 8.88‑acre Spencer, WI property with 111,600 SF of refrigerated and dry storage improvements
- Cold storage building constructed in 2022, plus office space and maintenance shop
- Two‑tenant NN lease structure with two renewal options
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
$892,889
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
7.14%
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%
$17,857,780
$17.9M
Cap Rate 7%
$12,755,557
$12.8M
Cap Rate 9%
$9,920,989
$9.9M
Market Conditions
NOI Build-Up for 110,500 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
$1.13M $10.20/SF
− Vacancy
−$76.6K −$0.69/SF
EGI
$1.05M $9.51/SF
− OpEx
−$157.6K −$1.43/SF
NOI
$892.9K $8.08/SF
Area
Marathon County, WI
Vacancy
6.80%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
15.00%
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%
$17,857,780
Cap Rate 7%
$12,755,557
Cap Rate 9%
$9,920,989
Alternative Uses
Best Use
Warehouse
$12.76M
$11.16M – $14.88M
NOI $892,889 @ 7.0% cap · market cap 7.14%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$20.42M
$17.86M – $23.82M
NOI $1,429,097 @ 7.0% cap · market cap 11.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
138
Businesses Nearby
Explore this area
Business Placement
Demographics for 54479, WI
3,838
Population
1,462
Households
2.6
Avg Household Size
39
Median Age
15%
College-Educated
85%
High-School Grad
76.8 sq mi
ZIP Area
50
Density / Sq Mi
$79,542
Median Household Income
$44,238
Median Earnings
$563
Median Rent
$175,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Refrigerated & cold storage - Two-tenant net-lease property with refrigerated storage, office space, and a maintenance shop.
Where is this refrigerated & cold storage located?
The property is located at 404 S Lasalle St Spencer, WI.
What is the asking price?
The asking price for this property is $12,500,000.
What are key features of this property?
This property features: 8.88‑acre Spencer, WI property with 111,600 SF of refrigerated and dry storage improvements; Cold storage building constructed in 2022, plus office space and maintenance shop; Two‑tenant NN lease structure with two renewal options
