Listing Agency: Lakes Family Real Estate/Otter Tail Real Estate Show Phone

Listed By: Todd Eklund Show Phone

Source: Exprealty

Added: Jul 6 Changed: Aug 8 Last Checked: Jul 26 at 9:06AM

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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 Lakes Family Real Estate/Otter Tail Real Estate

Investment Insights

Based on property information with market context.

This 30-acre parcel includes a 36-by-54 spray-foamed, heated, insulated drive-through shop designed to function as both work and storage space. Power has been brought into the property and to the shop. The property also includes a 50-by-100 partially completed pad intended for a future building site.

The parcel is located north of Inspiration Peak on County Road 6 and features mature trees and views. The setting is described as supporting wildlife.

For prospective owners, the combination of a heated drive-through shop, installed utilities, and an unfinished building pad provides a ready base for additional development while retaining a substantial land component.

Key Highlights

• 30‑acre parcel on County Road 6 north of Inspiration Peak with mature trees and views.
• 36x54 spray‑foamed, heated, insulated drive‑through shop with power brought to the property and into the shop.
• Partially completed 50x100 building pad ready for a new home site.

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

$15,230

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

3.81%

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%

$304,600 $304.6K

Cap Rate 7%

$217,571 $217.6K

Cap Rate 9%

$169,222 $169.2K

Market Conditions

NOI Build-Up for 1,944 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

$25.2K $12.96/SF

− Vacancy

−$1.8K −$0.91/SF

EGI

$23.4K $12.05/SF

− OpEx

−$8.2K −$4.22/SF

NOI

$15.2K $7.83/SF

Area

Otter Tail County, MN

Vacancy

7.00%

Lease Rate

$12.96 /SF/Yr

Expense Ratio

35.00%

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%

$304,600

Cap Rate 7%

$217,571

Cap Rate 9%

$169,222

Alternative Uses

Best Use

Flex RnD

$217.6K

$190.4K – $253.8K (±1% cap)

NOI $15,230 @ 7.0% cap · market cap 3.81%

Second Best

Industrial

$214.5K

$187.7K – $250.3K (±1% cap)

NOI $15,016 @ 7.0% cap · market cap 3.75%

Theoretical Best

Office A

$422.3K

$369.5K – $492.7K (±1% cap)

NOI $29,561 @ 7.0% cap · market cap 7.39%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Residential land & home ...

Lease Details

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

2

Businesses Nearby

Explore this area Business Placement

Demographics for 56524, MN

681

Population

758

Households

0.9

Avg Household Size

58

Median Age

37%

College-Educated

96%

High-School Grad

44.6 sq mi

ZIP Area

15

Density / Sq Mi

$74,688

Median Household Income

$42,115

Median Earnings

$1,021

Median Rent

$285,300

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

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Frequently Asked Questions

What type of property is this?

Residential land & home lot - A 30-acre parcel includes a heated, insulated 36-by-54 drive-through shop and a partially completed 50-by-100 building pad.

Where is this residential land & home lot located?

The property is located at 43914 County Highway 6 Clitherall, MN.

What is the asking price?

The asking price for this property is $399,900.

What are key features of this property?

This property features: 30‑acre parcel on County Road 6 north of Inspiration Peak with mature trees and views.; 36x54 spray‑foamed, heated, insulated drive‑through shop with power brought to the property and into the shop.; Partially completed 50x100 building pad ready for a new home site.