Minneapolis Multifamily Investment
For Sale
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4525 4th Ave S, Minneapolis, MN 55419
Well-maintained 8-unit apartment building in desirable Minneapolis location.
Property Size5,070 SF
Price / SF$201.18
Days on Market161
Property Features for 4525 4th Ave S
General Information
Standard status
Active
Size
5,070 SF
Class
C
Property subtype
Multifamily
Building Details
Year Built
1960
Units
8
Listing Agency:
Peritus Real Estate
Listed By:
John Stiles · License #40207306
Source:
Crexi
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 13 at 3:27PM
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 Peritus Real Estate
Investment Insights
Based on property information with market context.
This well-maintained, two-story brick apartment building is located in the Regina neighborhood within the Nokomis community of Minneapolis. Constructed in 1960, the property features 5,070 finished square feet. The unit mix includes seven 1-bedroom units and one studio/efficiency. Each unit is equipped with its own forced-air furnace, with residents responsible for their own heat expenses. The building also offers coin-operated laundry facilities for additional income and convenient off-street parking for tenants. The property's solid brick construction, individual mechanical systems, and straightforward unit mix contribute to its stability and ease of management. The property is an ideal candidate for enrollment in the Minneapolis 4d Affordable Housing Program, offering the potential for a reduced property tax rate in exchange for maintaining qualifying affordable rents. The location in South Minneapolis provides convenient access to parks, shopping, transit, and major corridors, appealing to long-term renters seeking neighborhood charm. This property presents an excellent opportunity for investors seeking steady cash flow with additional upside through tax optimization.
Key Highlights
- Desirable Regina neighborhood location within the Nokomis community of Minneapolis.
- Highly rentable unit mix: seven 1‑bedroom units and one studio/efficiency.
- Each unit has its own forced‑air furnace, with tenants paying their own heat.
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
$68,038
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
6.67%
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%
$1,360,760
$1.4M
Cap Rate 7%
$971,971
$972.0K
Cap Rate 9%
$755,978
$756.0K
Market Conditions
NOI Build-Up for 5,070 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
$132.0K $26.04/SF
− Vacancy
−$8.3K −$1.64/SF
EGI
$123.7K $24.40/SF
− OpEx
−$55.7K −$10.98/SF
NOI
$68.0K $13.42/SF
Area
Minneapolis, MN
Vacancy
6.30%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
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%
$1,360,760
Cap Rate 7%
$971,971
Cap Rate 9%
$755,978
Alternative Uses
Best Use
Apartment 5plus
$972.0K
$850.5K – $1.13M
NOI $68,038 @ 7.0% cap · market cap 6.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.21M
$1.06M – $1.41M
NOI $84,672 @ 7.0% cap · market cap 8.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
913
Businesses Nearby
Explore this area
Business Placement
Demographics for 55419, MN
27,919
Population
12,119
Households
2.3
Avg Household Size
39
Median Age
72%
College-Educated
97%
High-School Grad
4.2 sq mi
ZIP Area
6,647
Density / Sq Mi
$143,254
Median Household Income
$77,467
Median Earnings
$1,476
Median Rent
$479,000
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?
Apartment building - Well-maintained 8-unit apartment building in desirable Minneapolis location.
Where is this apartment building located?
The property is located at 4525 4th Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $1,020,000.
What are key features of this property?
This property features: Desirable Regina neighborhood location within the Nokomis community of Minneapolis.; Highly rentable unit mix: **seven 1‑bedroom units and one studio/efficiency.**; Each unit has its own forced‑air furnace, with tenants paying their own heat.
