Listing Agency: Century 21 Atwood e***@atwoodcompanies.com Show Phone

Listed By: Emily Silverness Show Phone

Source: Exprealty

Added: Aug 13 Changed: Aug 20 Last Checked: Aug 20 at 4:32AM

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Investment Insights

Based on property information with market context.

This four-unit multifamily property at 410 3rd Ave in Proctor, Minnesota offers a choice of ownership strategies. An owner occupant can live in one unit while leasing the remaining units, or the entire property can be operated as a rental asset.

The configuration supports residential income use within a single property, giving the next owner flexibility in how the units are occupied and managed.

Key Highlights

• Four‑unit multifamily configuration
• Owner‑occupancy option with additional units available for rent
• Entire property can be leased as a residential income asset

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

$10,694

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

3.06%

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%

$213,880 $213.9K

Cap Rate 7%

$152,771 $152.8K

Cap Rate 9%

$118,822 $118.8K

Market Conditions

NOI Build-Up for 1,200 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

$16.2K $13.50/SF

− Vacancy

−$923 −$0.77/SF

EGI

$15.3K $12.73/SF

− OpEx

−$4.6K −$3.82/SF

NOI

$10.7K $8.91/SF

Area

St. Louis County, MN

Vacancy

5.70%

Lease Rate

$13.50 /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%

$213,880

Cap Rate 7%

$152,771

Cap Rate 9%

$118,822

Alternative Uses

Best Use

Multifamily LT 5

$152.8K

$133.7K – $178.2K (±1% cap)

NOI $10,694 @ 7.0% cap · market cap 3.06%

Second Best

Apartment 5plus

$140.4K

$122.8K – $163.8K (±1% cap)

NOI $9,827 @ 7.0% cap · market cap 2.81%

Theoretical Best

Specialty Retail

$465.5K

$407.3K – $543.1K (±1% cap)

NOI $32,585 @ 7.0% cap · market cap 9.31%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Quadplexes

Suggested Use

Top Pick Real Estate Agency Restaurant Hair Salon Dental Office Nail Salon Parking Lot & Garage

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

4

Residential units

Location Intelligence

Trade Area within ½ mile

233

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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What type of property is this? Where is this quadplexes located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Quadplex - Four residential units provide flexibility for an owner occupant or a landlord leasing the entire property.

Where is this quadplex located?

The property is located at 410 3rd Ave Proctor, MN.

What is the asking price?

The asking price for this property is $349,900.

What are key features of this property?

This property features: Four‑unit multifamily configuration; Owner‑occupancy option with additional units available for rent; Entire property can be leased as a residential income asset