Auto Shop with Drive-In
For Sale
$1,700,000
4215 E Lake Street, Minneapolis, MN 55406
Commercial Sale, Minneapolis, MN
Property Size10,464 SF
Lot Size0.40 Acres
Price / SF$162.46
Days on Market34
Property Features for 4215 E Lake Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial, Industrial
Parking features
Covered, Parking Lot, Assigned
Exterior features
Block, Brick/Stone, Wood
Subdivision
Riverview Add
High school district
Minneapolis
Directions
Lake Street, west of the river to property on south side.
Standard status
Active
APN
0602823110025
Lot size
0.40 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
36553
Amenities
dock & drive-in doors
open, high ceiling spaces
Building Details
Year built
1950
Listing Agency:
Keller Williams Realty Integrity Lakes
(612) 821-7400
Listed By:
Chad E Heer · License #40427410
(612) 821-7400
Added: Jul 28
Changed: Aug 28
Last Checked: Aug 30 at 4:06AM
MLS# 7117538
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The property is a 0.40-acre corner parcel improved with a 10,464 SF building constructed in 1950. The existing operation is a Honda Town retail and service facility with open areas, high ceilings, ample parking, a dock, and drive-in doors. Exterior materials include block, brick/stone, and wood.
Located along Lake Street in Minneapolis’ Longfellow neighborhood, the site is across the river from St. Paul. Its CM2 - Corridor Mixed-use District designation allows a variety of potential uses, including residential redevelopment or continued use of the existing commercial improvements.
Located along Lake Street in Minneapolis’ Longfellow neighborhood, the site is across the river from St. Paul. Its CM2 - Corridor Mixed-use District designation allows a variety of potential uses, including residential redevelopment or continued use of the existing commercial improvements.
Key Highlights
- 0.40‑acre corner lot along Lake Street
- 10,464 SF building constructed in 1950
- CM2 - Corridor Mixed‑use District zoning
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
$133,887
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
7.88%
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%
$2,677,740
$2.7M
Cap Rate 7%
$1,912,671
$1.9M
Cap Rate 9%
$1,487,633
$1.5M
Market Conditions
NOI Build-Up for 10,464 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
$199.7K $19.08/SF
− Vacancy
−$8.4K −$0.80/SF
EGI
$191.3K $18.28/SF
− OpEx
−$57.4K −$5.48/SF
NOI
$133.9K $12.80/SF
Area
ZIP 55406
Vacancy
4.20%
Lease Rate
$19.08 /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%
$2,677,740
Cap Rate 7%
$1,912,671
Cap Rate 9%
$1,487,633
Alternative Uses
Best Use
Industrial
$1.91M
$1.67M – $2.23M
NOI $133,887 @ 7.0% cap · market cap 7.88%
Second Best
Retail
$1.84M
$1.61M – $2.15M
NOI $128,879 @ 7.0% cap · market cap 7.58%
Theoretical Best
Office A
$3.06M
$2.68M – $3.57M
NOI $214,034 @ 7.0% cap · market cap 12.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
674
Businesses Nearby
23k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 79%
Home Improvements & Furnishings 21%
Speedway
Shops & Services
13,907 visits/mo
0.1 miles
Frattallone's Ace Hardware
Home Improvements & Furnishings
4,906 visits/mo
0.1 miles
U.S. Bank
Shops & Services
4,571 visits/mo
0.3 miles
Demographics for 55406, MN
34,588
Population
17,439
Households
2
Avg Household Size
39
Median Age
56%
College-Educated
93%
High-School Grad
5.0 sq mi
ZIP Area
6,918
Density / Sq Mi
$91,865
Median Household Income
$56,291
Median Earnings
$1,276
Median Rent
$335,500
Median Home Value
Market
Vacancy Rate% for Retail in Minneapolis, MN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - CM2 zoning supports continued automotive use, building reuse, and residential redevelopment.
Where is this auto shop located?
The property is located at 4215 E Lake Street Minneapolis, MN.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: 0.40‑acre corner lot along Lake Street; 10,464 SF building constructed in 1950; CM2 - Corridor Mixed‑use District zoning
