Multi-Building Commercial
For Sale
$219,000
429 E Sheridan St, Ely, MN 55731
Three updated buildings offer flexible space for retail or office use, plus a renovated guest house and workshop.
Property Size1,362 SF
Price / SF$160.79
Days on Market55
Property Features for 429 E Sheridan St
General Information
Standard status
Active
Size
1,362 SF
Taxes and HOA fees
Annual Taxes
$2,635
Listing Agency:
Bear Island Realty LLC
(218) 349-5595
Listed By:
Patricia Bulinski · License #20274047
(218) 349-5595
Source:
Exprealty
Added: Jul 4
Changed: Aug 20
Last Checked: Aug 26 at 1:33PM
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 Bear Island Realty LLC
Investment Insights
Based on property information with market context.
This for-sale property includes three separate buildings: a main kit log structure, a guest house, and a workshop. The main building features a covered front porch measuring 8' x 22', a loft, and generous storage areas, with interior space described as versatile for retail, office, or other business use. Recent updates include newer flooring, LP heating, blinds, a metal roof, exterior stain, and fencing.
The guest house has been thoughtfully renovated and includes custom-built bunk beds and bed frames designed to accommodate up to eight guests. Improvements reported for the guest house include updated electrical, newer cove electric heat, newly insulated walls finished with tongue-and-groove wood, a fully equipped kitchen, and a 3/4 bath with ceramic tile flooring and backsplash.
The landscaped grounds feature stone pathways, decorative rock accents, and ample off-street parking, providing an inviting setting for guests or customers alongside the workshop building.
The guest house has been thoughtfully renovated and includes custom-built bunk beds and bed frames designed to accommodate up to eight guests. Improvements reported for the guest house include updated electrical, newer cove electric heat, newly insulated walls finished with tongue-and-groove wood, a fully equipped kitchen, and a 3/4 bath with ceramic tile flooring and backsplash.
The landscaped grounds feature stone pathways, decorative rock accents, and ample off-street parking, providing an inviting setting for guests or customers alongside the workshop building.
Key Highlights
- Property with 3 separate buildings: main kit log structure, guest house, and workshop
- Main building features a covered 8' x 22' front porch, loft space, and generous storage for retail, office, or other business use
- Recent main building updates include newer flooring, LP heating, blinds, metal roof, exterior stain, and fencing
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
$18,893
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
8.63%
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%
$377,860
$377.9K
Cap Rate 7%
$269,900
$269.9K
Cap Rate 9%
$209,922
$209.9K
Market Conditions
NOI Build-Up for 1,362 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
$34.0K $24.96/SF
− Vacancy
−$8.8K −$6.46/SF
EGI
$25.2K $18.50/SF
− OpEx
−$6.3K −$4.62/SF
NOI
$18.9K $13.87/SF
Area
St. Louis County, MN
Vacancy
25.90%
Lease Rate
$24.96 /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%
$377,860
Cap Rate 7%
$269,900
Cap Rate 9%
$209,922
Alternative Uses
Best Use
Office B
$269.9K
$236.2K – $314.9K
NOI $18,893 @ 7.0% cap · market cap 8.63%
Second Best
Retail
$183.9K
$160.9K – $214.5K
NOI $12,871 @ 7.0% cap · market cap 5.88%
Theoretical Best
Specialty Retail
$528.3K
$462.3K – $616.4K
NOI $36,984 @ 7.0% cap · market cap 16.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
539
Businesses Nearby
Explore this area
Business Placement
Demographics for 55731, MN
5,494
Population
4,954
Households
1.1
Avg Household Size
54
Median Age
41%
College-Educated
94%
High-School Grad
1,606.7 sq mi
ZIP Area
3
Density / Sq Mi
$62,900
Median Household Income
$31,840
Median Earnings
$641
Median Rent
$202,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Short term rental property - Three updated buildings offer flexible space for retail or office use, plus a renovated guest house and workshop.
Where is this short term rental property located?
The property is located at 429 E Sheridan St Ely, MN.
What is the asking price?
The asking price for this property is $219,000.
What are key features of this property?
This property features: Property with 3 separate buildings: main kit log structure, guest house, and workshop; Main building features a covered 8' x 22' front porch, loft space, and generous storage for retail, office, or other business use; Recent main building updates include newer flooring, LP heating, blinds, metal roof, exterior stain, and fencing
