Building Details

Building Size 1,500 SF

Year Built 1989

Stories 1

Units 1

Construction Concrete Block

Listing Agency: The Real Estate Company of Detroit Lakes Show Phone

Listed By: Christopher Howard Nord Show Phone

Source: Ivyrealestategroup

Added: Sep 23, 2025 Changed: Aug 23 Last Checked: Aug 22 at 12:59PM

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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 The Real Estate Company of Detroit Lakes

Investment Insights

Based on property information with market context.

Former self-serve car wash featuring a concrete block structure with three drive-through bays. The site includes more than half an acre between two parcels, with portions of the property fenced.

The property has over 200 feet of frontage on Highway 7 and is adjacent to the Dakota Rail Trail. The seller is currently in the process of annexing parcel two from Minnetrista to St. Bonifacius.

As a former car wash facility, the layout includes multiple drive-through bays and a configuration that can support a variety of automotive- and service-oriented retail uses, subject to applicable approvals.

Key Highlights

• Former self‑serve car wash with three drive‑through bays
• Over 200 ft of frontage on Highway 7
• Concrete block structure

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

$18,934

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

4.79%

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%

$378,680 $378.7K

Cap Rate 7%

$270,486 $270.5K

Cap Rate 9%

$210,378 $210.4K

Market Conditions

NOI Build-Up for 1,500 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

$27.0K $18.00/SF

− Vacancy

−$1.8K −$1.17/SF

EGI

$25.2K $16.83/SF

− OpEx

−$6.3K −$4.21/SF

NOI

$18.9K $12.62/SF

Area

Hennepin County, MN

Vacancy

6.50%

Lease Rate

$18.00 /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%

$378,680

Cap Rate 7%

$270,486

Cap Rate 9%

$210,378

Alternative Uses

Best Use

Specialty Retail

$270.5K

$236.7K – $315.6K (±1% cap)

NOI $18,934 @ 7.0% cap · market cap 4.79%

Second Best

Retail

$237.2K

$207.6K – $276.7K (±1% cap)

NOI $16,604 @ 7.0% cap · market cap 4.20%

Theoretical Best

Office A

$357.9K

$313.1K – $417.5K (±1% cap)

NOI $25,051 @ 7.0% cap · market cap 6.34%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Self service car ...

Suggested Use

Top Pick Parking Lot & Garage (Bike/Boat/Book/etc) Store Bakery Catering Service Pharmacy Cafe & Coffee Shop

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

3

Service bays

Yes

Fenced yard

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

163

Businesses Nearby

50k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 98% Dining 2%

Kwik Trip Shops & Services

29,618 visits/mo 0.5 miles

Holiday Station Store Shops & Services

18,258 visits/mo 0.4 miles

Old National Bank Shops & Services

1,482 visits/mo 0.4 miles

SUBWAY Dining

1,086 visits/mo 0.4 miles

Demographics for 55375, MN

4,778

Population

1,524

Households

3.1

Avg Household Size

34

Median Age

52%

College-Educated

99%

High-School Grad

5.1 sq mi

ZIP Area

937

Density / Sq Mi

$136,250

Median Household Income

$64,110

Median Earnings

$1,139

Median Rent

$395,600

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this self service car washes 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?

Self service car wash - Former self-serve car wash with three drive-through bays and more than 200 feet of frontage on Highway 7.

Where is this self service car wash located?

The property is located at 4195 Steiner Street Saint Bonifacius, MN.

What is the asking price?

The asking price for this property is $395,000.

What are key features of this property?

This property features: Former self‑serve car wash with three drive‑through bays; Over 200 ft of frontage on Highway 7; Concrete block structure