Building Details

Year Built 1920

Listing Agency: Re/Max Results m***@hometwincities.com Show Phone

Listed By: Robin Gwaltney

Source: Chrisfritchteam

Added: Aug 24 Changed: Aug 28 Last Checked: Aug 29 at 12:01PM

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Investment Insights

Based on property information with market context.

This mixed-use property combines a commercial suite with an attached main-level residence. The commercial area is arranged as a hair salon with an open work area, several salon stations, built-in cabinetry, a customer waiting area, and a restroom. Basement space provides additional storage and utility space.

The residence includes 2 bedrooms, a full bathroom, a half bathroom, and in-unit laundry within an open layout. Outdoor features include a large privacy-fenced yard and patio space. Built in 1920, the property fronts Highway 60 in Zumbro Falls and is situated near local businesses, services, and the recreation of the Zumbro River.

Key Highlights

• Mixed‑use layout with commercial space and attached main‑level apartment
• Commercial area configured as a hair salon with multiple stations and built‑in cabinetry
• 2‑bedroom apartment with 1 full bath, 1 half bath, and in‑unit laundry

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

$20,942

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

7.62%

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%

$418,840 $418.8K

Cap Rate 7%

$299,171 $299.2K

Cap Rate 9%

$232,689 $232.7K

Market Conditions

NOI Build-Up for 1,620 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

$30.7K $18.96/SF

− Vacancy

−$799 −$0.49/SF

EGI

$29.9K $18.47/SF

− OpEx

−$9.0K −$5.54/SF

NOI

$20.9K $12.93/SF

Area

Wabasha County, MN

Vacancy

2.60%

Lease Rate

$18.96 /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%

$418,840

Cap Rate 7%

$299,171

Cap Rate 9%

$232,689

Alternative Uses

Best Use

Retail

$299.2K

$261.8K – $349.0K (±1% cap)

NOI $20,942 @ 7.0% cap · market cap 7.62%

Second Best

Mixed Use

$161.4K

$141.3K – $188.3K (±1% cap)

NOI $11,300 @ 7.0% cap · market cap 4.11%

Theoretical Best

Office A

$475.9K

$416.4K – $555.2K (±1% cap)

NOI $33,312 @ 7.0% cap · market cap 12.11%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storefront properties

Suggested Use

Top Pick Auto Parts Store (Bike/Boat/Book/etc) Store Parking Lot & Garage Big Box & Wholesale Store Veterinary Clinic Building Supply

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

1

Residential units

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

47

Businesses Nearby

Explore this area Business Placement

Demographics for 55991, MN

1,292

Population

641

Households

2

Avg Household Size

48

Median Age

22%

College-Educated

97%

High-School Grad

54.1 sq mi

ZIP Area

24

Density / Sq Mi

$86,875

Median Household Income

$45,809

Median Earnings

$882

Median Rent

$294,600

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 mixed-use properties 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?

Mixed-use property - Commercial space is paired with an attached apartment and private outdoor area.

Where is this mixed-use property located?

The property is located at 438 Highway 60 Zumbro Falls, MN.

What is the asking price?

The asking price for this property is $275,000.

What are key features of this property?

This property features: Mixed‑use layout with commercial space and attached main‑level apartment; Commercial area configured as a hair salon with multiple stations and built‑in cabinetry; 2‑bedroom apartment with 1 full bath, 1 half bath, and in‑unit laundry