Updated Two-Unit
New
For Sale
$449,000
4230 39th Avenue S, Minneapolis, MN 55406
Separate residences include flexible lower-level space and a private entrance for the upper unit.
Property Size2,626 SF
Price / SF$170.98
Days on Market4
Property Features for 4230 39th Avenue S
General Information
Standard status
Active
Size
2,626 SF
Property subtype
Multi-Family
Units
Unit Mix
3BR/2BA, 1BR/1BA
Multifamily Units
2
Amenities
in-unit laundry
private exterior entrance
walk-in closet
shop space
garage door opener
Building Details
Year Built
1925
Listing Agency:
Steichen Real Estate
Listed By:
Eric Eickhof
(952) 472-6200
Source:
Fultonrealty
Added: Sep 6
Changed: Sep 8
Last Checked: Sep 8 at 5:40AM
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 Steichen Real Estate
Investment Insights
Based on property information with market context.
Built in 1925, this Minneapolis duplex contains 2,626 square feet across two residences. The main-floor unit includes 3 bedrooms, 2 bathrooms, a large kitchen, in-unit laundry, and a finished lower level with egress, storage, and space for additional living or work areas. The upper unit has 1 bedroom, 1 bathroom, a separate exterior entrance, and a large walk-in closet with storage.
Recent property improvements include a new roof, siding, gutters, and a furnace with a new heat exchanger. A 2.5-car garage adds shop space, 220-amp service, and an app-controlled door opener, while the driveway provides additional off-street parking. The property is located at 4230 39th Avenue S in Minneapolis, approximately 5 minutes from Minnehaha Falls.
Recent property improvements include a new roof, siding, gutters, and a furnace with a new heat exchanger. A 2.5-car garage adds shop space, 220-amp service, and an app-controlled door opener, while the driveway provides additional off-street parking. The property is located at 4230 39th Avenue S in Minneapolis, approximately 5 minutes from Minnehaha Falls.
Key Highlights
- 2,626‑square‑foot duplex with 2 residential units
- Main unit offers 3 bedrooms, 2 bathrooms, in‑unit laundry, and a finished egress‑equipped lower level
- Upper unit includes 1 bedroom, 1 bathroom, private exterior entrance, and large walk‑in closet
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
$34,031
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
7.58%
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%
$680,620
$680.6K
Cap Rate 7%
$486,157
$486.2K
Cap Rate 9%
$378,122
$378.1K
Market Conditions
NOI Build-Up for 2,626 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
$52.0K $19.80/SF
− Vacancy
−$3.4K −$1.29/SF
EGI
$48.6K $18.51/SF
− OpEx
−$14.6K −$5.55/SF
NOI
$34.0K $12.96/SF
Area
ZIP 55406
Vacancy
6.50%
Lease Rate
$19.80 /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%
$680,620
Cap Rate 7%
$486,157
Cap Rate 9%
$378,122
Alternative Uses
Best Use
Multifamily LT 5
$486.2K
$425.4K – $567.2K
NOI $34,031 @ 7.0% cap · market cap 7.58%
Second Best
Apartment 5plus
$452.5K
$395.9K – $527.9K
NOI $31,673 @ 7.0% cap · market cap 7.05%
Theoretical Best
Office A
$767.3K
$671.4K – $895.2K
NOI $53,713 @ 7.0% cap · market cap 11.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
632
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Separate residences include flexible lower-level space and a private entrance for the upper unit.
Where is this duplex located?
The property is located at 4230 39th Avenue S Minneapolis, MN.
What is the asking price?
The asking price for this property is $449,000.
What are key features of this property?
This property features: 2,626‑square‑foot duplex with 2 residential units; Main unit offers 3 bedrooms, 2 bathrooms, in‑unit laundry, and a finished egress‑equipped lower level; Upper unit includes 1 bedroom, 1 bathroom, private exterior entrance, and large walk‑in closet
